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CRU: Indonesian Stainless Steel Exports Likely to be Hit by Updated Safeguards

LONDON, Sept. 10, 2019 /PRNewswire/ -- The European Commission implemented amendments to the EU's safeguard measures starting from 1 October. The effects of these changes are expected to be relatively limited, however, Indonesia is losing its developing country exemption that is likely to restrict their export volumes of stainless into the EU significantly.

Indonesian stainless steel exports likely to be hit by updated safeguards (PRNewsfoto/CRU)

The European Commission implemented amendments

The European Commission implemented adjustments to the safeguard measures, due to come into force on 1 October. These are modifications which aim to balance pressure from steelmakers to tighten the safeguards and importers' interest in maintaining regular trade flows.

In this spotlight we focus on the effect of the new regulations on Indonesian stainless exports; if you have any question regarding the other amendments please get in touch with us to discuss.

The following are the eight main implemented changes to the safeguard quotas:

  1. Indonesia is no longer exempted from the safeguards for stainless flat products and seamless tubes.
  2. Individual countries cannot use more than 30% of the global quota, for products with a global quota (HR coil, large welded tubes).
  3. The large welded tubes product group will receive a global quota in line with the hot rolled coil quota.
  4. For rebar and wire rod individual countries cannot use more than 30% of the Other Countries quota once it is made available to countries that have filled their own quotas in the last quarter of the quota period (calendar Q2).
  5. The annual increase of the quota volume per period will be reduced from 5% to 3%. This would apply to the second half of the current quota period starting from 1 October and would retroactively lower the total available quota volume. 
  6. The category A (non-automotive) metallic coated sheet quota has been expanded to include the CN codes previously unique to category B metallic coated sheet quotas. Category B will remain untouched and will apply to the same trade codes as previously.
  7. Material imported under the category B (automotive grade) metallic coated sheet quota will need to prove end-use in the automotive sector.
  8. India will – uniquely – have its metallic coated sheet quotas merged into one.

Read the full story:
https://www.crugroup.com/knowledge-and-insights/insights/2019/indonesian-stainless-steel-exports-likely-to-be-hit-by-updated-safeguards/

Read more about CRU: http://bit.ly/About_CRU

About CRU

CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.

Since our foundation by Robert Perlman in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China.

CRU employs over 280 experts and has more than 11 offices around the world, in Europe, the Americas, China, Asia and Australia – our office in Beijing opened in 2004 and Singapore in 2018.

When facing critical business decisions, you can rely on our first-hand knowledge to give you a complete view of a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.

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