Eurofer makes EU steel safeguard review requests

European steel association Eurofer has sent the European Commission a list of requests for its review of safeguard measures on EU steel imports.

European mills are pushing for a quarterly allocation for all import quotas on individual countries and a cap to their access to the "other countries" quota in the last three months of each period. The first period was 1 February-30 June, the second starts on 1 July and runs until 30 June 2020 and the third will begin on 1 July 2020.

Under the current system, full-year import allocations for specific countries are made available at the start of each period. Quotas for some products, such as rebar and wire rod, have been exhausted within days of opening.

Importers' access to the "other countries" allowance in the last three months of each period are disrupting trade flows, Eurofer said, with foreign mills unloading large volumes at undercut prices to shift as much tonnage as possible to Europe.

Producers are also lobbying for changes to the hot-rolled coil (HRC) quota system. At present, there is one global quota under which all sellers can import. But Eurofer is asking for the introduction of country-based and quarterly allowances for HRC as well.

In addition, mills are pushing for a review of the 5pc increase of each quota allowance at the start of every period, which the commission introduced with the intention to factor in rising steel consumption in Europe. But Eurofer expects the sector will post minimal growth, if any, in 2019.

EU producers are also lobbying for the introduction of a system to ensure that developing countries, which contribute 3-9pc of the region's imports for specific steel products, are not exempt from the safeguard measures should they exceed their quotas. This is particularly relevant for imports of Indonesian stainless steel, which have risen this year.

Eurofer is also calling on the commission to ensure that the quotas for metallic-coated steel products — 4A and 4B, the latter used for automotive applications — are better monitored. The association alleges that imports of automotive-grade galvanised steel are being crowded out, with sellers that can no longer import 4A turning to 4B instead.

Eurofer is finally requesting that the EU puts forward a plan for the safeguards to factor in the UK's departure from the bloc.

The commission will accelerate its review of the measures put in place, a spokesperson from the institution said yesterday. But sources close to the situation said results are unlikely to be released before 1 July, when the next quota period begins. The investigation was previously expected to conclude by 30 September.