Assofermet, the association representing Italian distributors of scrap, raw materials and steel products, has expressed its opposition to the European Union's revision of its safeguard measures in a press release published on June 7.
According the association, the decision to extend the measures until the end of June 2026, coupled with the introduction of a 15 percent cap on HRC imports from “other “countries” puts European steel-consuming sectors such as automotive, construction, mechanical engineering and manufacturing at risk. In fact, Vietnam, Japan, Taiwan, and Egypt - which in 2023 alone exported a total of 3.9 million mt of HRC to the EU - are part of the "other countries" quota. With the implementation of the 15 percent cap this flow would stop at 2.26 million tons, eliminating about 1.63 million tons of imported steel - this is what emerges from a projection of the year 2024 realized by the association. This would have a major impact on the entire manufacturing industry, which is “already grappling with a worrying consumption crisis” and this would finally generate a steel shortage in the European Union, which, together with the Carbon Border Adjustment Mechanism (CBAM) would cause a general price hike, according to Assofermet.
“This is the worst scenario we could have expected from the extension of the safeguard measures,” Paolo Sangoi, president of Assofermet Acciai, commented. "Maintaining the safeguard for another 24 months implies an overlap with the CBAM, destined to generate de facto double taxation. If we add to this the various changes that the Commission envisages, Assofermet's position can only be firmly against its final approval.