Brussels, February 26, 2021 – In response to today’s announcement by the European Commission that it will review steel safeguard measures that have been in place since 2018, a coalition of downstream steel users is urging the Commission not to extend the measures beyond their expiration date this June. The ACEA association reports on its website that.
Production levels across Europe rise massively
While the COVID-19 pandemic severely impacted manufacturing activity across all sectors in Europe during 2020, production levels are now rising and are expected to continue to rise as the economy recovers in 2021.
Rising prices and long delivery times for steel products
As a result, since the second half of 2020, companies have faced rising prices for steel products and long delivery times due to insufficient domestic supply. Due to the safeguard measures currently in place, reduced competition from third countries means that import alternatives to reduce cost and delivery time pressures on European producers are limited.
Safeguard measures increase uncertainties
The possibility of extending the safeguard measures beyond June 2021 adds to the uncertainty and unfavorable market conditions currently faced by steel users.
Competitiveness of downstream steel users threatened
It is in the interest of downstream steel users to rely on a strong and competitive domestic steel industry in the EU. Excessive protection will only lead to an uncompetitive European steel industry, to the detriment of downstream users and end-users. Therefore, steel safeguards should expire as scheduled on June 30, 2021.
Read also:
- EU SAFEGUARD MEASURES: CALLS FOR IMMEDIATE END GROW LOUDER
- Orgalim calls for end to EU Safeguard measures
- End Safeguard now: ISTA and CAIR write urgent letters to EU Commission
- European steel users urge EU Commission to end threat of safeguard measures
- Gerber Steel GmbH urges end to EU Safeguard measures
- End for EU Safeguard: Assofermet calls on EU Commission to end market protection measures
- Automobile manufacturers’ association Anfia calls for end to EU Safeguard measures
- Eurometal calls on EU to “take care of steel consumers”
Coalition of EU trade associations
The coalition of EU trade associations representing the interests of downstream steel users consists of ACEA, APPLiA, CECE, CEMA, CEMEP, CLEPA, Orgalim and WindEurope.
Voices for an end to EU Safeguard measures grow louder
With this new coalition, voices for an end to Safeguard are getting louder. The associations EUROMETAL, ANFIA and ASSOFERMET have already called for an end to market protection measures at the EU. Stainless Steel Traders, such as Gerber Steel GmbH, have also already written to the EU Commission urging an end to Safeguard.
Source: acea.be
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