End-users of steel in the EU rally against protective measures

Six associations, representing the majority of European steel consumers, have joined forces to protest the permanent protection measures approved last week by the member states of the European Commission (EU) and the European Union (EU).

Since the first proposal for permanent measures was made public, some associations have expressed negative comments. This move confirms that EU end users are closely monitoring both the current situation and future developments.

“The EU did not take into account the interests of downstream steel consumers when it proposed the final measures,” the group said in a joint statement.

Signatories to this statement include the Automotive Manufacturers Association (ACEA), the Home Appliance Association (APPLIA), the Automotive Suppliers Association (CLEPA), the Metals Packaging Association, the Mechanical Engineering Industry Association (ORGALIME) and the Wind Energy Sector (WindEurope). Together, these associations represent companies that employ approximately 20 million people in Europe.

“Given that US import data show a very limited decline in imports of around -10% in 2018 compared to the same period in 2017, the likelihood of serious harm to EU producers is minimal. This reduction in US imports is 3 million tonnes of steel, while the total EU market is approximately 165 million tonnes, ”the group of associations adds. "As producers who produce in Europe, steel consumers fear that any protective measures will lead to higher prices and even increased capacity in the European steel market."

Market observers note that the consolidation of end-user groups is strong evidence that some changes in measures can be triggered if problems arise after they are implemented in early February.