According to a GMK report on April 29, 2024, the CEO of Acerinox stated that the EU should follow the US in imposing more tariffs and take further measures to restrict steel imports from Asia. With weakening demand and prices, imported steel is harming some EU companies.
This perspective was offered by Bernardo Velazquez, CEO of the Spanish stainless steel company Acerinox, in a Reuters interview. He pointed out that China's stainless steel production had increased by nearly 13% last year, while other countries decreased their production due to weak demand.
The CEO of Acerinox called for more aggressive action in the company's Q1 2024 performance. Despite a three-month shutdown at its factory in Cadiz, Spain, which led to reduced supply in the European market, there are still no signs of recovery in Europe.
The EU has already imposed punitive tariffs on steel and stainless steel products from 18 Chinese brands and has set quotas on steel imports as part of its market protection measures. Imports exceeding these quotas are subjected to a 25% tariff.
Protective measures are necessary but not sufficient. Velazquez argued that the EU should adopt the US model and impose more tariffs so that the Asian market operates under the same rules.
Last week, Acerinox announced that it would close its Bahru stainless steel factory in Malaysia in Q2 of this year due to low prices from Asian competitors. The factory specializes in producing cold-laminated materials, and the company is exploring various alternatives.
As earlier reported by the GMK Center, from January to March 2024, Spanish steel manufacturers reduced their steel output by 2.3% compared to the same period in 2023, to 2.91 million tons. The average monthly steel production this quarter was 971,700 tons, compared to 994,700 tons in the same period last year.
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