EU Steel Sector – Measures tackling the negative trade-related effects of excess capacity Steel Safeguard Measures
The EU batch galvanizing industry comprises approximately 700 installations that are strategically located across all EU Member States to provide sub-contract, long-term corrosion protection for steel components, products and structures that are manufactured in the EU. Our sector processes ~ 7 million tonnes of manufactured steel products annually. Our position on the proposed replacement of the existing steel safeguard measures and the introduction of a new trade defence measure is based on two fundamental realities:
- The future of the entire EU steel value chain, including the batch galvanizing sector, depends on a viable EU steel production sector that is properly shielded from the global issues of overcapacity of steel production. Unless the steel production sector is provided with the means to achieve the level of 85% production capacity utilisation that is envisaged in the Steel Action Plan, it will be impossible to realise the investments in decarbonisation and innovation that is required to ensure the future of the entire steel value chain.
- The health of the batch galvanizing sector is directly dependent on the competitiveness of the EU’s manufacturing and fabrication of steel end products.
- Manufacturers, especially small steel fabricators, require access to steel at competitive prices, with adequate availability and with minimal administrative burden
- Downstream steel-intensive end products, that are already subject to high levels of lower cost import competition, should be protected from the inevitable effects of diversions of steel trade flows towards end products, that will arise through the imposition of trade defence measures for crude, intermediate and finished steel products and the recent inclusion of these end products in the US tariff measures. Most of these steel end products are imported into the EU in the galvanized condition.
The proposed trade measures will require a carefully devised approach that takes account of both above considerations.
