The 5% quota increase was based on an expectation that domestic European steel consumption would also grow sharply, something that has not materialized, sources said.
The EC initiated a review of its steel import safeguard measures on Friday May 17.
“Cumulation of anti-dumping or anti-subsidy measures with safeguards may lead to a greater effect than desirable, and this issue should be examined in due course,” the EC said on Monday April 29. The safeguard measures use a combination of quotas and a tariff of 25% that is applied when the quota for a commodity or exporting region is fully taken up. The EC wants to avoid the imposition of “double remedies”, so that an anti-dumping measure will not be applied in addition to the 25% tariff after the quota is exhausted.
The EC opened the safeguard case in an attempt to prevent steel shipments being redirected to the EU after the United States imposed import tariffs as part of its Section 232 investigation. Almost one year after the preliminary measures were set, European steelmakers claimed the decision was not tough enough to curb the negative impact on prices from imports. European mills requested tougher measures, asking the EC to implement a quarterly volume allocation for all country-specific import quotas and remove the 5% year-on-year quotas rise. The EC first initiated a review of its steel import safeguard measures on May 17 of this year. Hot-rolled coil The impact of the safeguarding measures on the European HRC market has been minimal so far, market sources said. In the specific case of HRC, almost 60% of imports are covered by anti-dumping measures, so the EC applied a global quota to this product