In a letter to Stéphane Séjournet, Executive Vice-President of the European Commission, and Maroš Šefčović, European Commissioner for Trade and Economic Security, the European Federation for the Distribution and Trade of Steel, Tubes and Metals (EUROMETAL) expresses serious concerns about the exclusion of steel derivatives and processed products from the current guarantee system EU.
The Federation said it supported the Commission's efforts to address global steel overcapacity, although it warned that proposed measures, which focus on the primary protection of steel, if not adjusted, risk accelerating the displacement of production and distribution in EU
Downstream producers face threats to their survival
According to EUROMETAL, steel costs account for up to 70 percent of total sales in steel companies, while average profit margins rarely exceed 1-2 percent. A 10% rise in EU steel prices under the new safeguard regime could put many processors and producers out of business before the end of the planned two-year review period.
With the exception of derivatives, EUROMETAL warns, the market will be flooded with "cheap processed imports."
The EU risks becoming a dumping ground for low-cost steel products
EUROMETAL said imports of steel derivatives were displacing EU producers, offering finished products at prices below what firms could match. EU, even before safeguard reform
