Serbian President Aleksandar Vucic wants to hold discussions with European Commission President Ursula von der Leyen over the proposed new EU steel trade measure, which will hit Serbia hard, he said during a press conference last week.
“We want to hold discussions with Ursula von der Leyen when she comes to Belgrade and to urge her to at least lift the tariffs for us as an EU membership candidate country if she can,” he said. “We will also accept quotas.”
According to him, the proposal of the European Commission to increase tariffs on imported steel will directly affect the Chinese-owned steel plant in the country – HBIS Group Serbia Iron & Steel. “That is a huge problem both for us and our Chinese partners. We expected a reduction of EU steel import quotas and Serbia could have handled it. However, now additional tariffs are to be introduced and none of us can handle that.”
The European automotive industry has been unable to handle competition from China and carmakers have protested the new trade measure proposal, he added. “Brussels is protecting the European steel industry and steel mills, but is killing the European car industry,” he argued.
Vucic said that, besides Serbia, the United Kingdom, Turkey and some other European countries are hardest hit by the tariff increase.
In May, HBIS Serbia Iron & Steel said it would continue to operate with only one blast furnace due to weak demand globally, especially in the European steel market (see Kallanish passim).
The plant in Smederevo can produce about 2.2 million tonnes/year of steel with its two furnaces, while No.1 alone has a capacity of about 900,000 t/y. Product range comprises hot and cold rolled coil, pickled coil and electrolytic tinplate.
The mill has a 5,000-strong workforce but in total around 20,000 people depend on it, according to Serbian authorities.
Serbia’s January-August crude steel output was 928,500t, up by 1.12% on-year.
Svetoslav Abrossimov Bulgaria
