The new protective measures of the European Commission, which entered into force on July 1, had a significant impact on the steel market, in particular by restructuring quotas for specific countries, introducing additional quota mechanisms under free trade agreements (FTAs), and increasing non-quota quotas. Duties of up to 50 percent and bureaucratic delays. European steel producers and traders, in an interview with a SteelOrbis correspondent, shared their views on the measures that have been in effect for more than a month.
European steel market participants view the new EU steel import quota system as an important step in reducing import pressure, while the actual impact is expected to become more apparent in the coming quarters. Manufacturers expect prices to remain high, while they view inflation as one of the most difficult factors that the market will have to cope with.
Egypt became one of the beneficiaries of the quota allocation, while Algeria was given a lower official quota and China's quota was reduced to a very low level. In addition, according to the manufacturer who spoke with SteelOrbis, although Turkey's quota has been reduced on paper, the additional quota mechanism available to countries that have concluded free trade agreements will allow Turkish suppliers to compensate for a significant part of their lost access.
According to manufacturers, an increase in the extra-quota duty from 25 to 50 percent will increase risks, especially for companies importing large-tonnage cargoes. However, additional quota opportunities provided to countries with free trade agreements with the EU may limit the impact of quota reductions. With lower quotas and a 50% duty, importers are expected to be more careful when processing large volumes of goods.
In general, while some producers positively assess the measures taken, others believe that the reduction in quotas is insufficient and that the mechanisms within the system that continue to allow imports reduce the effectiveness of protection. Meanwhile, the outlook for the flat rolled steel market is reportedly more negative.
,Assofermet criticizes the complexity of the new quota mechanism ,
,Paolo Sangay, president of Assofermet, said that the association seriously criticizes the new regulation, arguing that it contains numerous problems, including issues related to constitutional legality and compliance with the rules of the World Trade Organization.
According to Sangoi, one of the main problems is the new quota allocation mechanism, which combines quotas for specific countries with two separate quotas "for other countries." Sangoy stated,
