EUROMETAL calls for the extension of protective measures against steel to future products
In a letter to Stefan Sedjourné, Executive Vice President of the European Commission, and Maros Sefcovic, European Commissioner for Trade and Economic Security, the European Federation for Distribution and Trade in Steel, Pipes and Metals (EUROMETAL) expresses serious concern about the exclusion of steel derivatives.
The Federation stated that it supports the European Commission's efforts to address the global steel capacity oversupply, although it warns that the proposed measures, which are aimed at primary steel protection, if not adjusted, could accelerate the displacement of production and distribution in the EU.
Manufacturers of secondary products face a threat to their survival
According to EUROMETAL, the cost of steel accounts for up to 70% of total sales of steel refineries, while the average profit margin rarely exceeds 1-2%. A 10% increase in steel prices in the EU under the new protective regime may lead to bankruptcy of many refiners and manufacturers before the end of the planned two-year review period.
Excluding derivatives, EUROMETAL warns, will flood the market with "cheap processed imported goods."
The EU risks becoming a dumping ground for cheap steel products
EUROMETAL said that the import of steel derivatives is displacing manufacturers from the EU, offering finished products at prices lower than those that EU firms can offer, even before the reform of protective measures takes effect. The Group warns that if the scope of protective measures is not extended to metal derivatives and processed products, the EU risks becoming a global dumping ground for cheap steel products.
Accordingly, EUROMETAL calls on the European Commission:
extend protective measures to metal derivatives. and subsequent processing of metal products;to assess the impact on processors, distributors, and small and medium-sized enterprises;use flexible tools such as migration mechanisms;ensure fair access to materials at competitive prices;Introduce country-specific quotas to increase predictability and support responsible trade flows.Steelorbis.com