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| Ferroalloy safeguarding measures |
EU Limits Ferroalloy Imports to Protect Domestic Producers
The European Commission has introduced ferroalloy safeguarding measures following an 11-month investigation. These measures impose country-specific tariff-rate quotas on ferro-manganese, ferro-silicon, ferro-silico-magnesium, and ferro-silico-manganese. As a result, imports exceeding the quota may enter duty-free only if prices exceed established thresholds, protecting EU steel and alloy producers.
Market Impact and Industry Response
The ferroalloy safeguarding measures exclude silicon metal, despite ongoing concerns about low import prices. Imports from Norway and Iceland, members of the European Economic Area, are included. Consequently, major producers like Elkem expect reduced sales volumes to the EU but anticipate higher market prices and compensating sales to other regions.
Monitoring and Regulatory Outlook
The European Commission will hold trimonthly consultations with Norway and Iceland to assess the effects of the ferroalloy safeguarding measures. This step ensures regulatory oversight, evaluates market distortions, and maintains fair competition. Therefore, EU producers may benefit from price stabilization while importers must adjust strategies to comply with new quotas.
ScrapInsight Commentary
The EU’s ferroalloy safeguarding measures aim to protect domestic alloy producers and stabilize prices amid rising import competition. While silicon metal remains exempt, regular monitoring and consultations with Norway and Iceland will influence trade flows. This policy could incentivize increased local ferroalloy production, supporting the EU steel sector and reducing dependency on imports.
