EU member states approved a proposal to revise quotas for steel safeguards submitted by the European Commission at the end of May to the World Trade Organization (WTO).
EU Trade Commissioner Phil Hogan confirmed on Twitter that the proposal was approved. He stated that “… this proposal will bring significant benefits to the industry during this challenging period. This decision reflects the Commission’s commitment to effectively protecting EU industry from the effects of trade reorientation. ” This proposal is in line with WTO rules, he added.
The document, presented at the end of May, caused a lot of concern among metallurgists, as well as European trade unions. A number of official statements have been issued from Eurofer and other associations requesting the European Commission to continue considering their proposal. The biggest proposed changes were the calculation of all quotas for each country on a quarterly basis, as well as changes in the way the residual quotas are used.
Hot coil quotas will also have a strong impact as they move from global to country specific.
New changes in safeguards should be implemented from the beginning of July when new quotas become available to the market. The official publication of the changes should be done in the coming days.