EU corrects miscalculations in proposal to extend steel import quotas

The European Commission has stated that the miscalculations in its official document proposing to extend steel safeguards by three years have been corrected.

Prior to the correction, the share of imports in the EU market in 2018 was reported at 12.5 percent, while in 2020 the share was reported at 20 percent. The shares of imports in 2018 and 2020 have been corrected as 17.1 percent and 14.8 percent, respectively.

According to the commission, the absolute share of imports decreased year on year during the period considered, by 13 percent in 2019 and by 27 percent in 2020 when compared to 2018. However, the presence of imports in the market remained at high levels, resulting in the EC’s decision. During the period considered, the share of imports increased significantly as compared to the production of the EU industry. In the years prior to the imposition of a safeguard measure, the maximum share reached by imports was 11.8 percent in 2017. Following the imposition of the quotas in 2018, the import share increased to 17.1 percent. The share of imports increased,  whereas production in the EU industry decreased in the given year. It is noteworthy that in 2017, the production volume was 254.92 million mt and in 2018, when the measures were imposed, the production volume decreased to 200.42 million mt.

Regarding the latest situation in capacity utilization in Europe, in a webinar held on June 9 by Turkey’s Flat Steel Exporters and Industrialists Association (YISAD) in partnership with SteelOrbis, one participant stated that blast furnaces were closed amid the lockdowns in Europe, an intentional blast furnace production shortage seemed to be created and predicted that new blast furnaces would not be opened due to environmental measures, as SteelOrbis previously reported.