The European Union's steel market is on the brink of a significant shortage of hot rolled coil (HRC), with an estimated annual deficit of 1.63 million tonnes. This alarming forecast comes from the Italian steel trade association Assofermet, following the EU's decision to revise its residual safeguard quota.
The European Commission's extension of safeguards until June 30, 2026, and the introduction of a 15% cap per origin for HRC, are expected to disrupt the supply chain and impact several steel-consuming sectors critically. The association warns of dire consequences, including loss of competitiveness in industries such as automotive, construction, and manufacturing.
The revision, based on outdated data, overlooks the current embargoes and sanctions affecting traditional EU suppliers, potentially leading to uncontrolled price hikes, customs delays, and financial strain for importers.
