The European Commission’s Safeguard extension was not only a slap in the face for European downstream steel consumers, but is increasingly proving to have been made with a hot needle. Already in the notification to the WTO, we were able to prove that the EU had made a glaring error. Now another error has been found, which the EC had to correct. Again a calculation error. What else is hidden in this fatal miscalculation called EU Safeguard extension?
Sad but true: Again error in Safeguard extension
After a serious error had already occurred in the notification of the Safeguard extension on certain steel products of the European Union to the WTO (we reported), the European Commission had to admit to another severe error. A calculation error occurred in category 4, metallic coated sheets, which had to be corrected with an official amendment notification of the Commission’s implementing rules.
Categories 4A and 4B (Metallic Coated Sheets) wrongly divided
While the total tariff rate quotas (“TRQs”) for Category 4 appeared to have been calculated correctly, the breakdown between Categories 4A and 4B, and between country-specific and residual tariff rate quotas, was incorrectly reported.
After a recent hearing with the European Commission, we are no longer surprised that errors occur in Safeguard. And wonder how many more errors can be found in the Safeguard extension?
LME and SHFE: Figures continue to point upwards
Metals prices are up again today (Friday, July 9, 2021) in some interesting areas.
On the LME, nickel futures are currently up 1.5%. Aluminum futures are also up 0.4%.
Chinese stainless steel spot prices are also up across the board by as much as 1.23%. Carbon steels spot prices are also up another 0.7%.
Futures on the SHFE for HRC are up by 0.36%, those for stainless steel by around 1.6%, aluminum is trending upwards by 0.32% and nickel futures are currently pulling away from all other non-ferrous values with a price increase of 2.61%.
Source: shfe.com.cn, lme.com
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