EU revises quotas on steel imports

EU Trade Commissioner Phil Hogan said the coronavirus crisis could lead to huge stocks of steel that could then flood the European Union when demand returns, something that the bloc will seek to prevent. Hogan said that “the adjustment for this year will take place by July 1 as planned. We are looking at an overview of steel guarantees in this context. Some exporters from third countries may well decide to sell their product at a lower price or at any price or at any price in order to gain a greater share in the smaller EU market. "

In 2018, the EU imposed safeguards to control incoming steel to protect European producers after Washington imposed 25% steel tariffs that shut off the US market for many exporters. Quotas for 26 grades of steel, including stainless steel, were set on average for imports in 2015-2017 plus 5%, while last year the growth was 3%. Imports outside the quota are subject to a 25% duty. The Commission originally envisioned a further 5% increase in quotas, although this is subject to revision.