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EC steel safeguards could aggravate supply chain - Assofermet

Steel News - Published on Mon, 21 Jan 2019

Image Source: expometals
Assofermet, the Italian Association of Steel Traders and Distributors, one of Europe's leading industry associations, sees a "large risk" of surging steel prices harmful to European consumers and Europe's supply chain competitiveness, if the EU proceeds with its proposed steel import safeguards. Mr Riccardo Benso. Assofermet chairman and the CEO of Albasider said that "As we saw also in the US prices are likely to go up as a consequence of trade barriers, making it more expensive to produce steel locally, and consequently final products such as whrte goods and cars, as well as steel products for the construction sector. We do think that the duties that are already in place are enough.”

Mr Benso said that "The provision of more and more protectionist measures can only aggravate the competitiveness problems that already partly afflict our businesses.In the long term it can also accelerate the process of delocalization and further loss of competitiveness of some parts of our European industrial system. Much of the added value that characterizes the European industrial system lies precisely in the manufacturing industry chain in its entirety."

Assofermet has sent a letter to the European Commission explaining the association’s view that a country-quota system is not the right way to proceed, Benso said. According to the association, the use of "averages per country" corresponds in fact to a reduction of the available quotas, since in the first two years of the three years (2015-2017) taken into account. Russia and China still exported large volumes to Europe.

The EC notified the World Trade Organization on December 19 of its proposal to impose country-specific quotas for the biggest sources of imports, along with quarterly global quotas for each product for all other countries. The exception is for hot-rolled coil, which received a quarterly global quota. EC member states are expected to decide in coming days whether to keep the proposal as it is or make changes.

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Posted By : Ratan Singh on Mon, 21 Jan 2019
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