Still on Monday, the European Union had to correct its error in the Safeguard calculations to the WTO. Only a few hours after we had pointed it out. The European market expects a continuing steel shortage and rising prices. And alloy prices in the EU are rising to record highs.
EU corrects errors in Safeguard
After we had to point out yesterday in an article that the EU had made mistakes in the Safeguard notification, then came on Monday, 14.06.2021, the correction notification of the European Union to the WTO.
Changes to the Safeguard notification
Old version: The level of imports increased its share significantly as compared to the production of the Union industry, reaching more than 20% in 2020.
New version: During the period considered, the level of imports increased its share significantly as compared to the production of the Union industry.
To be precise, the import share for 2020 was only 14.8% compared to the 20.3% erroneously assumed by the EU. This means that the EU had miscalculated the import share by more than 27%. Moreover, imports have actually continued to fall steadily compared with previous years.
Safeguard justification based on wrong assumptions
The EU had made the justification for the extension of the Safeguard on wrong assumptions after important import figures had been negligently mixed up in the document.
The EU lacks due diligence!
We have to ask ourselves, if the Safeguard justification has been knitted with such a hot needle, how carefully has the EU worked at all? Or is it like the tax laws that are written by lobbyists and only have to be implemented by politicians?
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Further rise in EU steel prices and ongoing shortages expected
S&P Global Platts has collected reactions from market participants on the announced extension of the EU Safeguard measures. In summary, the EU market expects prices to continue to rise and steel shortages to persist. Western and Southern European mills are expected to be unable to meet European demand.
EU alloy prices rise due to strong demand and tight supply
Bulk alloy prices in Europe have risen steadily in recent weeks, with three of the top five alloys reaching multi-year highs, as exceptionally high demand coincides with tight supply in the continent’s warehouses.
High-carbon ferro-manganese prices have reached their highest level since 2009. Silico-manganese and ferro-silicon prices have ripped through 2008 highs. This is currently reported by Argus Media in an article.
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