The new protective measures of the European Commission, which entered into force on July 1, had a significant impact on the steel market due to the restructuring of quotas for specific countries, the introduction of additional quota mechanisms under free trade agreements (FTAs), and an increase in steel exports.exceeding the quota duty by up to 50 percent and bureaucratic delays. European steel producers and traders, in an interview with a SteelOrbis correspondent, shared their views on the measures that have been in effect for more than a month.
European steel market participants view the new EU steel import quota system as an important step in reducing import pressure, while the actual impact is expected to become more apparent in the coming quarters. Manufacturers expect prices to remain high, while inflation, in their opinion, is one of the most difficult factors to deal with. рынку.
Egypt became one of these beneficiaries of the quota allocation, while Algeria was assigned a lower official quota and China's quota was reduced to a very low level. In addition, according to the manufacturer who spoke with SteelOrbis, although Turkey's quota has been reduced on paper, the additional quota mechanism available to countries that have concluded free trade agreements will allow Turkish suppliers to compensate for a significant part of their lost access.
According to the manufacturers, an increase in the quota duty from 25 to 50 percent will increase risks, especially for companies importing large-tonnage cargoes. However, additional quota opportunities provided to countries with free trade agreements with the EU may limit the impact of quota reductions. It is expected that with a reduction in quotas and a 50% duty, importers will be more cautious about processing large volumes of materials through customs.
In general, while some producers positively assess the measures taken, others believe that the reduction in quotas is insufficient and that the mechanisms within the system that continue to allow imports reduce the effectiveness of protection. Meanwhile, the outlook for flat rolled steel is reportedly more negative.
Assofermet criticizes the complexity of the new mechanism квотирования
Paolo Sangay, president of Assofermet, said that the association seriously criticizes the new regulation, arguing that it contains numerous problems, including issues related to constitutional legality and compliance with the rules of the World Trade Organization.
According to Sangoi, one of the main problems is the new quota allocation mechanism, which combines quotas for specific countries with two separate quotas for "other countries." Sangoy stated that one of these additional quotas is only available to countries that already use country-specific quotas, while the other quotas are reserved for certain countries. According to Assofermet, such a structure can lead to a significant imbalance in the market, since it actually gives an advantage to countries that exhaust their own quotas first, since they can subsequently gain access to additional quotas in тоннаже.
Assofermet She also criticized the distribution of quotas among exporting countries. In an interview with SteelOrbis, Sangoy stated that some countries that are less They are attractive to European buyers due to the use of anti-dumping measures, and relatively high quotas have been allocated. In contrast, the association noted that quota tonnages for some countries that have traditionally supplied high-quality steel to the EU have been significantly reduced.
In addition, the association linked the publication of quota tonnage data just one day before the decree comes into force to the complexity of the new system, arguing that this increases the likelihood of calculation errors and leads to quota allocation that does not adequately reflect actual trade flows or the needs of the European market.
Feralpi and Federacci satisfied with the distribution квот
Feralpi and the Italian Steel Producers' Association Federacci are satisfied with the quota allocation and stated that They are highly satisfied with the decisions of the European Commission on the allocation of quotas. According to Feralpi, the calculation of quotas based on import levels that existed before the pandemic indicates that the European Commission has conducted a detailed assessment.
Feralpi attributed the late publication of quota allocation primarily to administrative procedures in Europe and the need for a thorough assessment of EU effectiveness. trade and institutional relations with its trading partners.
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