By Metal Miner – Jan 31, 2025, 2:00 PM CST
- The European steel market is facing uncertainty due to potential US tariffs and ongoing anti-dumping investigations.
- Eurofer has requested stricter import quotas and increased tariffs to protect the domestic steel industry.
- Traders warn that increased protectionist measures could lead to higher steel prices and further market instability.
Via Metal Miner
“The import market is slow right now. We have seen a lot of pressure on imports,” one trader said on January 24. They were referring to the anti-dumping investigation on HRC imports from Japan, Egypt, India and Vietnam, which the European Commission started in August. The move followed a request by the European Steel Association, also known as Eurofer, on behalf of its members.
The findings of that investigation are due by April and could see increased provisional duties on material from those countries as well as retroactive tariffs. Whatever the results, many traders seem on edge about what 2025 may bring for steel prices.
Anti-Dumping Measures Just One Factor to Consider
The general outlook for 2025 is also uncertain. This is mainly due to newly-inaugurated U.S. President Donald Trump’s discussions about introducing various tariffs on imports into the United States. That said, it is important to note that Trump has yet to say anything about steel specifically.
Combined with anti-dumping measures, potential tariffs could hit the EU hard. As one trader put it when asked about imports of steel from the 27-member European Union, “It depends on what Trump does.” Under the first Trump administration, the United States implemented tariffs of 25% and 10%, respectively, on steel and aluminum imports from all countries.
The subsequent Biden administration abolished that policy in October 2021 in return for the EU abolishing their retaliatory tariffs.
As of January, the “Enemy” is Uncertainty
In a January 10 filing, Eurofer also asked the EC to slash quotas on flat carbon steel imports by up to 50% as part of a functional review. Reports stated that the goal was to create a balance between imports and domestically rolled steel. Eurofer reportedly claimed that tariffs on imports over stipulated quotas should rise to 34% from the current 25% tariff.
However, the trader warned that introducing increased tariffs or more quotas would create more uncertainty in the European steel market. “Insecurity creates doubt, and doubt creates higher prices,” they said. “More quotas will make sure local prices go up as imports go down.”
The trader also noted that the Eurozone’s overall economic outlook for 2025 remains difficult. This is likely to impact larger building projects as well as even consumer purchases.
They went on to warn that all of this could result in end users purchasing more downstream products from abroad, such as coated steels. Aside from construction applications, hot rolled coil notably serves as feedstock for the production of cold rolled coil as well as tubes and pipes.
By Christopher Rivituso
More Top Reads From Oilprice.com
- Buyers Flock to Negotiate U.S. LNG Deals Amid Trump’s Tariff Threat
- Malaysia State Oil Giant Petronas Looks to Boost Production
- U.S. Dollar Surges as Trump Announces Imminent Tariffs on Canada and Mexico
Download The Free Oilprice App Today
