Marcegaglia opposes to include Indonesian stainless HRC in EU safeguards
5 Jul 2019 14:35 reported by Hazel Chen
In recent months, the European Steel Association (EUROFER) and some steel producers have requested the European Commission (EC) to include Indonesia in the EU safeguard measures due to the sharp increase in stainless steel imported from the ASEAN (Association of Southeast Asian Nations) countries.
However, the chairman of Italy-based Marcegaglia, Antonio Marcegaglia, has written to the European Parliament and the EC, expressing that he was opposed to include Indonesian stainless steel into EU safeguards.
Marcegaglia indicated that 40% of the stainless steel hot-rolled coi; (HRC) the company used came from Europe and the rest came from other countries, including Indonesia. He pointed out that the demand for stainless steel coils in Europe was expected to be increased by 3-5% in the coming year.
After the restructuring of Outokumpu (after the merger with Inoxum), European producers did not have a large number of HRCs that could be sold to re-rollers such as Marcegaglia. He pointed out that Marcegaglia can only purchase HRC from Acciai Speciali Terni, the only European stainless steel plant with surplus HRC available for selling.
Therefore, the limit on the stainless steel HRC imports would cause a risk on the company's business operations, and it was not beneficial to EU producers.
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