The EU has introduced a large number of import restrictions designed to protect the domestic producer. However, the war in Ukraine and, as a result, the drop in imports of our products showed that European manufacturers are not able to cover the needs of the market
As a result, metal becomes more expensive in the EU. This is stated in the study of the MMC Center.
“The security of the markets of developed countries has become a factor in their vulnerability to disruption of production chains. The decrease in supplies from Ukraine and Russia has led to the fact that manufacturers in different countries, who were so actively protected by governments, could not cover the resulting hole in the supply. It turned out that there was no free capacity “, the study says.
This is especially felt in the market for hot-rolled flat steel in the EU: the European market has lost supplies of both coils and slabs, which are raw materials for the former, and where 84% of the market was provided by Ukraine and Russia, the study says.
“Other countries were unable to cover the drop in supplies from Ukraine. As a result, prices rose. At the same time, this segment was actively protected additionally through anti-dumping investigations,” the authors of the study point out.
The authors of the study see only one way that can change this situation: the abolition of protectionist measures, which will enable the market to regulate itself.
“Under the current conditions, the continuation of the policy of tough protectionism negatively affects the prospects for the global economy, whose economic growth has slowed down due to the war on the territory of Ukraine. Ukraine is part of European and global chains and is ready in many respects to replace the reduction in supplies from Russia, which is already happening under the influence of sanctions. However, for this, the world community needs to help our country now in establishing new logistics routes, and later in the post-war restoration of the country’s economy,” the study concludes.
Recall that Ukraine and the UK agreed on the complete bilateral abolition of duties on the supply of products. Now a similar decision is being prepared for adoption in the EU.
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