The European Automobile Manufacturers’ Association (ACEA) has expressed its disappointment at the decision of EU member states to support the European Commission’s proposal to adopt definitive measures that will continue to restrict imports of steel into the EU, pointing out that these measures do not take into account the needs of downstream users of steel, such as the automotive sector.
According to the ACEA, automobile manufacturers source almost all of their steel (approximately 94 percent) in the European Union. ACEA members are therefore most concerned about the impact that the extension of the safeguard measures, until at least July 2021, will have on access to European steel and the inflationary effect it will have on European market prices. The cost of automotive grades of steel has been consistently high for several years and delivery lead times have lengthened considerably. Meanwhile, through consolidation in the European steel industry, the pool of EU producers is getting smaller and the scarce capacity for automotive steel is getting ever tighter.
“The Commission considers that part of its proposal is automotive-specific as it grants a separate quota to some steel products which are used substantially (but not exclusively) in the automotive sector. However, the fact that other sectors will be competing for this quota will reduce its usefulness to automobile manufacturers. Ultimately this specific quota does not address the sector’s two key concerns: the inflationary effect that this safeguard will have on EU steel prices and the scarce capacity of EU producers to fulfill orders today,” the ACEA statement reads.