Posted on 18 Jan 2019
Italian steel company ceo Antonio Marcegaglia believes that prices will remain at the current weak levels in February but he expects to see some recovery starting in March, he tells Kallanish.
He also confirmed what he said in an interview with Siderweb that, “… in my opinion, there will not be the same enthusiasm that characterised 2017 and 2018. All in all, however, we are at the beginning of another positive year. The end of trade tensions between the U.S. and China, and the possible recovery in Chinese domestic demand, may slow down the uncertainties that have affected the last few months. That is why I think that there may also be repercussions on prices. I do not expect any significant growth but I believe that, in the medium term, 2019 will maintain price levels slightly higher than at present. It is also possible that there will be an imminent rebound when the new [… EC] safeguard measures are launched, after the falls of the last few weeks.”
With regard to the draft of the new EU safeguard system, Marcegaglia does not expect the final model of the safeguard system to change significantly from the draft sent to the WTO. “I believe that the proposed system is undoubtedly balanced and worthwhile in resolving the distortions created in the downstream sector by the anti-dumping measures on hot-rolled coil of 2017. In the past, due to the lack of arrival of these materials, there has been a significant increase in products such as cold-rolled and galvanized, due to attempts to overcome the trade barrier by countries penalised by duties. Therefore, a system that has decided to correct this anomaly can only be welcomed in a positive way.”
Marcegaglia also tells Kallanish that the proposal will rebalance the system and protect the entire supply chain. The aim of the safeguard is not to stop imports, but to stabilise historical flows, protecting the European market from anomalous dynamics due to American duties, he adds. “The model that should be approved can be managed by companies without particular problems: since each country will be aware of its annual ceiling at the outset, there may be a kind of self-discipline in supply,” he concludes.
