Assofermet warns of disruption from upcoming EU safeguard on ferroalloy imports

The Italian metals traders’ association ASSOFERMET has raised concerns about the European Union’s forthcoming safeguard measures on ferroalloy imports from non-EU countries. The regulation — expected to be published in the EU Official Journal by 18 November — will cover imports of ferromanganese, ferrosilicon, ferro-silicomanganese and ferro-silico-magnesium.

According to ASSOFERMET, which issued the statement at national level, the planned safeguard could significantly restrict supply. The draft EU regulation foresees a 25% cut in available import volumes, despite long-standing shortages in European ferroalloy production. The association warns that the measure would place additional pressure on EU steel producers and foundries, including aluminium foundries already operating under difficult conditions.

ASSOFERMET has asked the Italian government to seek adjustments in Brussels, including:

• reducing the import-volume cut to 20%,

• introducing a carry-over mechanism for unused quota, and

• applying a 2% annual liberalisation rate.

Another issue highlighted by the association is the planned variable out-of-quota duty. ASSOFERMET argues that a fluctuating tariff — instead of a fixed duty — would leave importers unable to calculate costs when contracts are signed. The draft regulation also does not specify how the variable duty would be set, by which authority, how often it would be updated, or how it would be published.

Source: Assofermet, Photo: Fotolia

The association also questioned why Norway and Iceland are covered by the new measure, noting that both countries belong to the European Economic Area (EEA) and have historically been excluded from EU steel safeguard measures. Norway, it said, is one of the EU’s key long-term trade partners, and ferroalloy restrictions could strain a relationship that goes well beyond the current regulation.