Jun 21, 2021
EU states vote in favour of steel safeguard measures extension

EU member states voted in favour of the European Commission's proposal to extend the current safeguard measures on steel imports late last week, according to market sources. 17 member states approved the extension, eight were against and two abstained.

The 17 member states who voted in favour represent 88 percent of the EU's population, while any proposal is approved if the countries in favour represent at least 65 percent of the EU population. However, the Commission still has to take and announce a decision on the matter before the end of this month. The investigation in relation to the current safeguard measures started in late February this year.

As reported previously, the European Commission sent member states a draft proposal to extend the steel import safeguards for another three years, with a three percent annual increase of the tariff rate quotas. European steel prices may strengthen further if measures are extended, several market sources believe, as markets such as Italy heavily rely on imports, especially with Acciaierie d'Italia (formerly known as Ilva) producing at reduced capacity. Local Italian steel distributors' association Assofermet has been opposing the decision to extend the EU safeguard measures in light of the current supply shortages and the expected increase in consumption in 2021 and 2022. Its European counterpart EUROMETAL agreed that European distributors are facing huge difficulties due to limited supply options from domestic mills and from the import market. At the same time, producers, represented by Federacciai in Italy and by EUROFER at the European level have defended the proposed extension "due to the persistence of the distortive protectionist measures imposed by the United States."

Source: Steel Orbis