European steel association Eurofer met with the European Commission to discuss high imports while weak demand is already putting pressure on local steel prices. Multiple sources suggest it is lobbying for a tariff similar to the tax imposed by Donald Trump in his previous term, which would apply to all finished steel imports under the guise of eliminating a national security threat.
“The commission is, of course, aware of the sector's problems , is a sector with which we have close, ongoing contact and dialogue. Any new cases of trade protection are considered on a case-by-case basis on their merits,” a commission spokesman told Argus in Brussels on Tuesday.
Sources said the commission understands the concerns of factories, but at the same time it has to take into account the interests of consumers steel.
Imports into the EU hot rolled coil (HRC) market have risen sharply since China began ramping up exports in the third quarter of last year. Imports since July 2023 have accounted for about 25% of all supplies to the EU market, when protective quotas were reset at the beginning of each quarter, compared with 11-15% in previous months.
Imports rose to a record 1.56 million tons in July and would have been even higher if 175 thousand tons had not been removed from customs clearance to avoid additional duties under tariff quotas.
The EU imported 6.2 million tons of HRC in January -July, which is a record figure, despite tightening security measures. The import share of total supply is higher in cold-rolled coils and hot-dip galvanized steel (HDG), where the impact of comparatively high energy costs is even more problematic for local mills. Steel industry sources suggest the current safeguard is ultimately not fit for purpose, and they also question the ability of importers to hold back supplies to avoid tariffs.
However, others believe the impact of the current 15 percent cap emissions from other countries and the ongoing dumping investigation are not yet being felt, and that these measures will help tighten the market when demand strengthens.
Vietnam is a major source of hot-dip galvanizing supplies to the EU, and sources expect this could be the next a case of dumping, especially given the high level of consumption of Chinese hot rolled products in the country.
