European Steel Association (EUROFER) commented that the safeguard investigation launched after the imposition of Section 232 tariffs, stating that the safeguard investigation is taking place in the context of global overcapacity and the deflection of otherwise US-bound imports towards the EU.
“The safeguard mechanism should be broad, but the purpose is not to close the market, as some steel importers have claimed. The EU safeguard mechanism explicitly serves only to prevent a further, sudden surge in imports resulting from deviated steel trade flows”, said Axel Eggert, Director General of EUROFER.
EU steel imports have increased significantly, from 18 million mt in 2013 to 30 million mt in 2017 – a 66 percent rise. In the first quarter of 2018 alone, steel imports surged by another eight percent year-on-year.
“There have been claims made by some steel importers that the safeguard will close the EU market to imports. This is concretely untrue – these are claims made by undertakings that benefit from unsustainably low-priced, dumped imports”, emphasised Mr Eggert. “In practice, the safeguard will guarantee the open access of steel trade flows to the EU market at a nevertheless historically high level”.
“Let me be clear: the safeguard shall not cause a shortage of supply or cause safeguard-linked steel price increases”, concluded Mr Eggert. “In the meantime, we also welcome that the EU has addressed the US tariffs at the WTO in order to find a global solution as soon as possible.”