The European Commission has decided to issue a statement of objections to MMG's proposed acquisition of Anglo American's Brazilian nickel plant. The European Steel Association (EUROFER) welcomed the decision, citing the importance of maintaining competition and reliable supply of raw materials for the European stainless steel industry.
According to EUROFER, European stainless steel manufacturers depend on reliable access to imported ferronickel to produce high-quality low-carbon steel. The Association stated that such trade should remain open and competitive, while at the same time meeting European standards for sustainable development, decarbonization and social responsibility.
EUROFER warns against further concentration of supplies никеля
" Any deal affecting strategic raw materials should strengthen competition, reliability of supplies and industrial development of Europe's autonomy, rather than creating new dependencies," said Axel Eggert, CEO of EUROFER, adding that the European Commission's position helps to guarantee independent and competitive access to key raw materials for European stainless steel production.
EUROFER stated that maintaining access to competitive, low-carbon ferronickel is important for European steel producers seeking to meet their decarbonization requirements while continuing to invest and produce in Europe.
The Association warned that further concentration of supplies of strategic raw materials could increase the pricing policy of suppliers, reduce procurement opportunities and affect the market situation in the long term to the disadvantage of European producers.
EUROFER also pointed to Indonesia's ban on nickel ore exports and its impact on the global nickel and stainless steel supply chain, arguing that further consolidation in this regard should carefully evaluate nickel supplies to Brazil.
EUROFER calls for long-term guarantees of ferronickel supplies in Бразилию
According to EUROFER, any end result of a transaction should include reliable and long-term structural, managerial and/or ownership-based guarantees, not just contractual obligations.
The Association stated that such measures should preserve direct and competitive access so that European stainless steel manufacturers receive ferronickel produced at Brazilian Anglo American enterprises and ensure the continued operation of assets on market conditions.
"The European steel industry depends on international trade and will continue to do so. But open trade must also be fair, sustainable and competitive," Eggert said, adding that Europe must maintain its ability to take a responsible approach to the supply of raw materials and avoid over-reliance on one country or supply chain.
There are no comments yet.