EU steel quotas should not disrupt the distribution and activities of small and medium-sized enterprises
The EU should introduce a global quota for steel imports with restrictions for each country, according to a significant part of the feedback provided to the European Commission during consultations after the introduction of protective measures.
The quota should be global for some products, with lower volumes compared to the current mechanism, according to statements from buyers and sellers. According to many respondents, this measure should be expanded to protect European service centers and their customers.
EU producers want the new measure to limit the share of imports in the flat-rolled market to 15%, or about 11 million tons, while imports accounted for only 5%, or 2 million tons, of the long-rolled market. A tariff of 50% should be applied to imports exceeding quotas. Some buyers agree with this, although others believe that it would be too restrictive a measure.
Factories want the measures to be implemented from January, but trading firms want to set a later start date so they can prepare. "Importers need at least nine months from the date of publication of any protective measures after their introduction to ensure proper adaptation and implementation," the Steelinvest trading company said in a statement.
The South Korean government has asked that new measures be notified at least six months in advance and that they not be applied until the current safeguards expire.
"First of all, the rules should be communicated to users clearly and well in advance of their entry into force. Distributors need time to adjust their sourcing strategies, while processing industries need predictability to survive the transition period without disruption. Poorly thought out or hasty measures can disrupt supply chains, harm reliable suppliers and create instability, especially for small and medium—sized enterprises," the EUROMETAL steel distributors association said, repeating its call for recycling measures.
The German company Bilstein stated that these measures should be indefinite, with a clause on revision, allowing for a quick response to market changes. "A long-term regulatory framework — with periodic structured reviews — will support a sustainable, competitive and resilient European steel industry," manufacturer ArcelorMittal said in its feedback to the commission.
The German trading company Interfer stated that tariffs should not be imposed on low-carbon steel and on sizes that are insufficient for supplies to the EU, and tariffs of 5-15% should be imposed on other materials, depending on their availability in EU factories. European Association