U safeguard measures are expected to be extended for one year from the beginning of July, learns from sources in the market.
The European Commission is yet to publish a proposal on the future of the measures. Sources in Europe, though, report that local steel associations are communicating that a decision is close.
According to rumours, the measures could be extended for a period of one year with an increase of tax-free quotas of 5% compared to the current volumes.
An extension of measures would bewelcomed by steelmakers in Europe, but a decision to extend them only for one year could create further uncertainty in the market, among buyers and suppliers alike.
"An extension until mid-2022 would only mean re-creating the current scenario of uncertainty in 12months," a steel processor says. "Imports need to be ordered many months in advance and the uncertainty over the measures is hurting the possibility to make long-term plans."
Short comments: This will mean that within a year, EU demand for other countries' steel raw materials will not fall, will only rise, is bound to affect domestic steel prices.
Therefore, if you need us to drum closure and drum cap seal, please order as soon as possible.
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