Italy's Steel producers assn raises alert over Russian entry to WTO
Steel News | 2012-05-15 08:37:37
Steel producers in Italy have raised concern over unfair trade practices of Russia and its upcoming entry into World Trade Organization.
By Paul Ploumis
MILAN (Scrap Monster): Steel producers in Italy have raised concern over unfair trade practices of Russia and its upcoming entry into World Trade Organization.
According to Milan Flavio Bregant, Director General of Federcciai, the steel producers association of Italy, there are potential threats to Italian and European steel industry emerging from Russia’s unfair trading politics.
"Russia, which is to join the WTO in June/July, has a number of duties on steel imports and on exports of steelmaking raw materials, namely ferrous scrap. In order to face this means of trading control, Europe imposed quotas on ex-Russia steel imports through the issue of import licences", Mr. Bregant said. He added, "Thanks to these rules the market has worked well, until now."
The Federacciai official stated that, despite entering the WTO, resulting in the withdrawal of import quotas, Russia will confirm its import and export duties though with some downward adjustments.
He went on to say, "The country is even imposing physical restrictions, blocking some of the most important ports for scrap exports." Bregant also highlighted that "a similar situation already occured a couple of years ago with Ukraine. Since then, the country has tripled its hot rolled coil imports into the European Union".
Giuseppe Pasini, outgoing chairman of the Italian steel producers' association Federacciai, said that in 2012 Italy may see limited steel output growth compared to 2011 despite the positive figures recorded in the first quarter of current year.
"The main reason is the negative trend of steel consumption not only in Italy, but in general in Europe and also in emerging countries such as China, India and Brazil. This means that the upcoming months will be characterized by decreasing steel output, adding that it would be difficult to maintain the growth rate in output (around five percent year on year) recorded in the first quarter,” he added.
Mr. Pasini also cited the latest EUROFER steel market outlook for the European Union, which said that EU apparent steel consumption will be down 10 percent in Q1, down 5.5 percent in Q2, stable in Q3 and up 7.5 percent in Q4, all on year-on-year basis.
