EU initiates review of steel import safeguard measures amid market changes

The European Commission has announced a review of the safeguard measures applicable to imports of certain steel products.

The review, requested by 13 EU Member States on Dec. 17, highlights significant changes in market conditions, including low demand for steel and increased exports from China, which have affected traditional trade flows.

The Commission aims to reassess the allocation and management of tariff rate quotas to ensure they align with current market dynamics and stakeholder interests. The feedback period ends on Jan. 10, 2025.

Holidays could hinder evaluation of proposals: sources

While EU market participants are still gauging the news, some have criticized the timing of the announcement.

Many market participants are either already on holiday or preparing to leave by the end of the week, so there is concern that they will not have sufficient time to draft a proper response to the notice within the deadline. This has led to frustration among some stakeholders who feel that the timing is inappropriate and could hinder a comprehensive evaluation of the proposed measures.

"It is extremely important that EU is getting the right impression from the EU steel users about implications of prevailing safeguard measures on their businesses," Alexander Julius, president of Eurometal, told S&P Global Commodity Insights on Dec. 18. "Responses from steel users are extremely important so that the EU gets a balanced picture."

Opinion mixed on potential implications

Participants' opinions diverged on the effects on the market.

A Germany-based distributor noted the potential implications of the review. "EU review of safeguard measures could lead to higher domestic prices," he said. "It can be used to help the EU steel industry."

However, not all industry voices are optimistic. Another Germany-based distributor expressed skepticism about the review's effectiveness. "I don't think that the safeguard review is positive for the market," he said. "The underlying problem is low demand, not price, so review won't help with protection on imports.

"Imports are expected to be significantly lower in 2025," a European mill source said. "However, I'm under no illusion about real demand, which is still expected to be weak."

EU HRC prices remained largely stable on Dec. 18, even as some mills confirmed higher offers for the first quarter of 2025.

Platts, part of S&P Global Commodity Insights, assessed Northwest European HRC at Eur555/mt ex-works Ruhr, stable on the day.

Platts assessed Southern European HRC at Eur555/mt EXW Italy, also stable on the day.

Interest in imported HRC remained low due to comparable domestic prices, concerns about safeguard duties, and longer lead times.

Platts assessed imported HRC in Northwest Europe at Eur530/mt CIF Antwerp, down Eur10 on the day.

Platts assessed imported HRC in South Europe at Eur530/mt CIF Italy, down Eur5 on the day.