Steel imports from the East - threats and consequences for Europe

The EU steel industry has long perceived steel imports from China as a serious threat. But also the supply of steel from Ukraine and Russia is harmful to the European metallurgical industry. According to Krzysztof Kuklicza, CEO of the Polish company Sambud-2, trade from the east requires solutions that should benefit both sides.

In the second half of 2016, imports accounted for 25 percent of the European steel market. The European Commission presented the correct decision, according to EU metallurgists, regarding the introduction of anti-dumping duties on Chinese steel. “Now we are happy that we were able to provide concrete actions to protect our own market. However, this could lead to an influx of cheap other products into Europe, ”says Krzysztof Kuklicz.

On the other hand, recently there has been an increase in imports of products from Ukraine and Russia, in particular, profiles and pipes, since the import of raw materials from these countries was blocked. On the Polish market, prices for products have increased, because the price of raw materials has increased. By selectively blocking the purchase of goods from the East, it becomes necessary to look for new sources of supply for many companies in Poland. “Any agreements and contracts must be well thought out so as not to harm,” says Krzysztof Kuklicz.

According to experts, a further inflow of ready-made cheap products from Ukraine and Russia may lead to serious consequences in the EU market in the long term, since European manufacturers will not be able to withstand competition from foreign suppliers of cheap products.