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Antonio Marcegaglia to Siderweb: 2019 and the new EU safeguard system

At the beginning of the new year, Antonio Marcegaglia presented his expectations for 2019 to Siderweb: “In my opinion, there will not be the same enthusiasm that characterized 2017 and 2018. All in all, however, we are at the beginning of another positive year. The end of trade tensions between the U.S. and China, and the possible recovery of Chinese domestic demand, may slow down the uncertainties that have affected the last few months. That is why I think that there may also be repercussions on prices. I do not expect any significant growth, but I believe that in the medium term 2019 will maintain price levels slightly higher than at present. It is also possible that there will be an imminent rebound when the new safeguard is launched, after the falls of the last few weeks.”
With regard to the draft of the new EU safeguard system, Chairman Marcegaglia said: “I do not expect the final model of the safeguard system to change significantly from the draft sent to the WTO. I believe that the proposed system is undoubtedly balanced and worthwhile in resolving the distortions created in the downstream sector by the anti-dumping measures on hot-rolled coils of 2017. In the past, due to the lack of arrival of these materials, there has been a significant increase in products such as cold-rolled and galvanized, due to attempts to overcome the trade barrier by countries penalized by duties. Therefore, a system that has decided to correct this anomaly can only be welcomed in a positive way.”
Antonio Marcegaglia went into detail: “I believe that the proposal will rebalance the system and protect the entire supply chain. In fact, the aim of the safeguard is not to stop imports, but to stabilize historical flows, protecting the European market from anomalous dynamics due to American duties. The model that should be approved can be managed by companies without particular problems: since each country will be aware of the outset of its annual ceiling, there may be a kind of self-discipline in supplies.”

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