The European Commission has launched targeted consultations to seek feedback from industry stakeholders on the scope of the new steel regulation, which entered into force on July 1, according to a statement on July 30.
The consultations are conducted in accordance with article 12.1 of the June 17 framework regulation, which requires the Commission to consider all issues related to steel production. At the same time, the need to expand the list of products into the following categories is assessed:
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- , pipes and hollow profiles made of cast iron, , ZNON alloys and wire made of other alloys, ,
- , stainless steel wire, , ZNON alloys and forged bars from other alloys, ,
In accordance with the steel regulations, which reduced the total volume of tariff quotas by 47%, duties on steel have been increased. The increased duty rate above quotas to 50% and the introduced rule on the origin of products in molten form currently apply to only 30 categories of goods. As a result, market participants point out that this could lead to goods lower down the value chain being imported into the EU without quotas, which undermines the purpose of regulation.
The consultations will last eight weeks— from July 28 to September 28. The Commission intends to analyze the submitted materials and complete the evaluation of the product range by December 31.
Domestic steel prices in Europe have increased since the new regulation came into force, especially after the publication of quotas for individual countries on June 30, as the availability of imports has decreased markedly.
Platts, part of S&P Global Energy, last evaluated domestic hot-rolled coils in Northern Europe on July 29 at a price of 715 euros per ton at the Ruhr plant, which is 35 euros more than on July 1. In Southern Europe, the cost of HRC in the domestic market was last estimated at 705 euros per ton at a factory in Italy, which is also 35 euros higher over the same period.
Expectations of price growth in the European steel market in the fourth quarter also remain optimistic, as participants can now adjust their trading strategies, at least with some regulatory clarity.
,, Author:, Riley Waters
