May 24, 2023
EU steel buyers request safeguard measures removal

A group of associations representing many different steel-using sectors, including carmakers, wind tower producers and home appliance manufacturers, is calling for safeguard measures to be terminated in Europe by the end of June, as part of the ongoing revision of the measures.

The European Commission launched the latest review in December, to decide whether the measures should continue for a further year beyond next month.

The coalition of steel users issued a public letter noting that safeguard measures still represent a burdensome restriction to accessing steel, impacting the competitiveness of manufacturing industries in the continent. The letter, seen by Kallanish, is signed by Acea, Applia, Cece, Cecimo, Clepa, Orgalim and Wind Europe.

The signatories also state the upcoming introduction of the Carbon Border Adjustment Mechanism (CBAM) “will result in higher steel input costs for end using industries, which will continue to face competition from third-country downstream goods that are not subject to CBAM”.

“Our industries must have the necessary flexibility to source steel both on the domestic EU market and from third countries, given its importance as an essential manufacturing input. Such flexibility is necessary to manage increasingly frequent supply chain disruptions, source at reasonable prices to maintain our industries’ international and domestic competitiveness and source steel with low embedded carbon emissions to meet our customers’ growing sustainability requirements,” the letter explains.

The coalition also notes the ongoing dispute at the WTO with Turkey on the measures has highlighted that there are doubts as to whether steel imports have ever represented a serious threat for the EU steel industry.

With the review ongoing, not only end-users are voicing their concerns but also distributors and processors of steel. Italian association Assofermet, through the voice of its president Riccardo Benso, is also calling openly for the measures to be revoked or significantly changed.

Emanuele Norsa Italy

Source: Eurometal