In the segment of stationary service centers, there is growing concern about the ability of European manufacturers to cope with rising prices, according to Callanish from the Italian trade association Assofermet.
Market conditions continue to be characterized by complexities and concerns related to CBAM, new protective measures, and rising costs related to the U.
S.-Iran conflict. Rising costs and prices may lead to a gradual loss of competitiveness of the European manufacturing sector and the relocation of some production facilities to third countries. This is due to continued uncertainty and problems with the implementation of CBAM and other trade measures, the note warns.
The conflict in the Middle East is exacerbating the situation, which remains "complex and extremely unstable."
Moreover, the new protective measures will entail a significant reduction in existing quotas and a sharp increase in duties on imports of coils outside quotas, as well as an expansion of anti-dumping duties on cold-rolled coils from key exporting countries.
"The resulting complex and particularly burdensome regulatory framework[which is]expected to lead to a structural increase in the cost of imported steel in Europe, while strengthening the position of EU producers in seeking to raise prices," the note says.
The past month was characterized by generally weak trading activity in the flat pipe segment, which is in line with the trend already observed in January. Service centers showed limited interest in purchasing rolls, while end users limited purchases to urgent needs. With regard to CBAM, the European Commission has indicated that at this stage, the default values for countries should be used as the basis for calculating costs, the note concludes.
Author: Natalia Kapra
Kallanish.com
