Tianjin Xinyue Industrial and Trade Co., Ltd.
Tianjin Xinyue Industrial and Trade Co., Ltd.
Home > News

Eurosteel proposes to reduce 75% steel import quota

Apr. 21, 2020

According to the latest data released by the European Automobile Manufacturers Association (ACEA), due to the impact of the new coronary pneumonia epidemic caused by the factory shutdown, as of April 6 (Brussels, Belgium time), at least 1.138 million Europeans were affected.


According to ACEA, the statistical scope of the data includes 27 countries in the European Union and 28 countries in the UK, and only shows the direct impact of the epidemic on employees employed by car, truck, truck and bus manufacturers; Taking into account, the impact of the epidemic on employment will be more serious.


At the same time, due to the factory's shutdown, the EU-wide loss of car production reached at least 1.465 million units, and the average shutdown time as of April 6 was 18 working days. If the suspension time continues to be extended or the scope of the suspension continues to expand, the production losses will increase further.


ACEA said that the EU's automotive industry has provided 2.6 million direct jobs for the society and a total of 229 automobile assembly and production plants. Taking the entire supply chain into account, the EU automotive industry has provided 13.8 million indirect and direct employment opportunities for the society.


According to data released by the International Automobile Manufacturers Association, in 2019, the automobile production of the 27 EU countries decreased by 4.7% year-on-year to 17.735 million units, accounting for about 20% of global automobile production. British automobile production was 1.381 million, a year-on-year decrease of 13.9%. During the financial crisis from 2008 to 2009, the EU automotive industry was also the hardest hit. In 2009, the output of cars in 27 EU countries was 15.29 million, a decrease of 17% year-on-year; the output of British cars was 1.09 million, a decrease of 33.9% year-on-year.


ACEA believes that the serious impact of the new coronary pneumonia epidemic on the automotive industry is unprecedented, and calls on the European Union and member states to take strong measures to provide liquidity support for auto manufacturers, suppliers and dealers.


ACEA also called on the European Union to postpone the implementation of strict carbon emission regulations to avoid companies facing heavy fines for failing to meet the standards, thereby exacerbating the crisis. The EU's new carbon emission regulations have been implemented since this year. According to regulations, from 2020, car manufacturers in EU countries need to meet stricter emission regulations, that is, new vehicles should not emit more than 95 grams of carbon dioxide per kilometer. By 2025, this rule will become stricter, and the average fuel economy in effect by 2030 will be 92 miles per gallon.


ACEA's previously released data shows that due to the latest regulations on vehicle emissions, car sales in the European Union (excluding the United Kingdom) in February were 957,000, down 7.4% year-on-year.


In a letter to Ursula von der Leyen, President of the European Commission, ACEA and the Association of Tire Manufacturers, Suppliers and Distributors set out to postpone the implementation of the carbon emission regulations.


They said in the letter that due to the impact of the new coronary pneumonia epidemic, the major car companies have not yet started the production, development, testing and certification of vehicles. The epidemic disrupted the production R & D plan formulated by car companies to comply with current and future EU laws and regulations, so some adjustments to the implementation time of relevant laws and regulations are required. They also emphasized that making such a request does not intend to question the law itself, nor the fundamental goal of ensuring road safety and protecting the environment. People in the automotive industry should work with policy makers to plan for post-epidemic development in a timely manner.


The downturn in the automotive industry will have a serious impact on the steel industry.


According to data released by the European Iron and Steel Industry Union (Eurofer, referred to as Eurosteel), steel consumption in the automotive industry accounts for 18% of the total EU steel consumption. At present, the European Union has sent a letter to the president of the European Commission, calling for various measures to support the steel industry to get rid of the impact of the new coronary pneumonia epidemic and fight for survival.


Eurosteel requires the European Commission to immediately review the existing trade safeguards and recommends reducing the steel import quota by 75% within 6 months to help the European steel industry cope with the current difficult situation; for imported steel that exceeds the quota, the tariff The tax rate drops below 25%. Eurosteel also recommends the implementation of steel import restrictions related to crisis and safety.


The European Union announced in February last year that the final trade protection measures for steel products will continue until June 2021, during which the European Union will set import quotas for 26 steel products and impose 25% tariffs on those exceeding the quota. UEFA welcomed this measure at the time, and ACEA accused it of protectionism.


In addition to this, the European Union also calls on the European Union and its member states to regard the steel industry as a "necessary industry" so that it can maintain its operations during the crisis.


In 2019, EU steel imports fell by 15% year-on-year to 25.3 million tons, the lowest value since 2015. In 2019, the EU's imports of most steel products, including cold-rolled sheets, coated steel, rebar and wire, have declined, and the average monthly imports of hot-rolled products have dropped to 634,000 tons. Turkey is the EU's largest steel importer, but the country's average monthly imports in 2019 are also shrinking year-on-year.


The main reason for the decrease in the steel imports of the EU last year was that the steel import safeguards restricted imports and the steel demand was weak. In 2019, EU steel exports reached 20.5 million tons, a record low.


Hot Products

CONTACT US
Request a Quote