The EU notified the World Trade Organization June 10 that it is proposing to extend steel safeguard quotas for three years, with a 3% annual liberalization of quota levels. The current safeguards system, which has governed imports into the EU since 2018, is due to expire on June 30 after three years in operation. The EU has invited market reaction to the proposal by June 18.
Market participants showed mixed reaction June 14. While most sources expected safeguards to continue, exporters to the EU and buyers of imports were hoping for a 5% increase in quota levels to combat the current steel shortage that is gripping Europe.
"I think it will be difficult for the economy, Western European mills are obviously not able to cover the demand in Europe," said a German stockholder. "An increase of 3% makes absolutely no difference. Southern Europe will be most affected, they are very addicted to imports normally and if they're blocked, especially in Italy - with the Ilva issue, it will be difficult for them to cover their full demand," the source added.
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