The European Automobile Manufacturers’ Association (ACEA) has stated that it is extremely disappointed by the European Commission’s proposal to extend the restriction of steel imports into the EU. According to ACEA’s statement, continuation of the safeguard measures disregards the interests of downstream users of steel, such as the automotive sector amid material shortages in the European steel supply chain.
ACEA stated the safeguard measures limit the potential of manufacturers to balance steel shortages in the European market through imports. Meanwhile, ACEA noted that producers now charge up to €1,300/mt for automotive grades of steel and prices continue to surge to record highs in the European market.
“While the Commission does propose an expansion of the quota for certain automotive grades, the increase is so marginal that it will make no difference to the scarcity of supply or to the inflationary effect of the safeguard,” ACEA said in the statement.
“In a market where EU steel producers are dictating prices and reporting record earnings, the idea that domestic steel is under threat of serious injury from imports is scarcely credible. We need imports to fill supply chain gaps. If this proposal is approved by member states in its current form, then the market situation will remain critical for automobile manufacturers for the foreseeable future,” Eric-Mark Huitema, ACEA director general, said.