European steel market remains subdued, and is trying to curb imports

Flat steel prices in Europe have softened due to high imports and inventory levels, and expected to decline in the short term due to less buying activity in the market. Buyers are in a wait and see mode as uncertainties in the European markets are looming since the US extended the exemption of 25% tariff till 1st June. Meanwhile, the EU launched safeguard investigations on the steel imports to keep away the redirected imports to the European markets after the implementation of tariffs on the steel imports to the US.

While these safeguard measures would minimise the risks for the European steel manufacturers, though at the same time they could also reduce the competition on the supply side. It is expected that the potential EU’s safeguard duties onto steel imports would mostly affect the flat steel products. These potential safeguard measures may also target Turkey as its exports to the EU on the rise.

Meanwhile, European commission conditionally cleared ArcelorMittal’s acquisition of Ilva. ArcelorMittal is now required to sell some of its plants in Europe to one or more buyers who can satisfy the EU commission their eligibility to operate these plants without the risk of closing them eventually.

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