While the EU steel manufacturers' associations celebrate the new European Commission's protective proposal, long products buyers are beginning to question the potential impact on their segment. While most market participants agree that apartment prices are likely to rise sharply, many doubt the impact on long positions, as import quotas from a number of countries remain unused, Kallanish notes.
In key markets such as Italy, France and Germany, imports of rebar and rolled products from outside the EU are already limited. very limited. European prices for rolled products largely depend on competition between EU producers, rather than pressure from external imports.
Although the rebar market remains mainly regional, with some spillovers between Italy, Southern Germany and France, the presence of Spanish manufacturers of long products and sections both in Italy and in other countries. France remains particularly strong. It is reported that some low-cost products, such as fittings from outside the EU, do not have the necessary European certification, making them unsuitable for sale or use in the EU market.
The European Commission's proposal is expected to significantly reduce imports of all types of products, including rebar, and imports of wire rod are expected to decrease by about 40%, while long products and light profiles are expected to decrease by 55%.
However, the dependence on imports varies depending on the country. Italian and French buyers of longs say that before making conclusions, it is necessary to study national import data. Italy and France are reportedly not experiencing significant distortions due to the import of long products from outside Europe.
The Italian wire rod buyer suggests that the new protective measures appear to be a "copy" of the US tariff approach. Producers of long positions may be overly optimistic when interpreting European data, which may lead to temporary price increases that will quickly decrease in the current stagnant market.
Although wire rod prices are sometimes influenced by Algerian, Egyptian or Turkish materials, recent protectionist measures have not prevented lower prices in both southern and northern Europe.
Another source in Italy sees the new protective measures as a temporary buffer, noting that the European Commission, having delayed explaining the CBAM measures, may have decided to adopt what amounts to "copy and paste" the US tariffs.
Last week, Eurofer noted that the new trading system includes a tariff quota system that meets WTO requirements, unlike the 50% U.
S. duties on all steel imports justified by unilateral
