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Kallanish Steel Weekly: Coronavirus exacerbates further steel trade battles (June 2, 2020)

The coronavirus emergency and the consequent fall in both production and demand of steel globally has fuelled a new wave of trade disputes. The market has been facing increasing limitations to global trade for many years now, but during the last month this trend has accelerated again. Many countries have been quick to launch new import restrictions in response to the lowering demand of steel, but Europe and Turkey, in particular, have been at the centre of a new battle. Last week Turkey told the World Trade Organisation that it could impose additional import duties of 9-17% on imports from the EU of various products, in response to EU safeguard measures that have been in place since 2019. Turkey could impose a 9% duty on products under HS code 7208, 10% for HS code 7209, 14% for HS codes 7210 and 7215, 15% for HS codes 7211, 7212 and 7214, and 17% for HS code 7216. The European Commission (EC) imposed the measures on 26 steel products from a host of countries from 2 February, 2019. In the following 15 months, the EU has ignored the Free Trade and Customs Union agreements between the EU and Turkey and continued to strengthen measures against Turkey, says the Turkish Steel Producers’ Association (TCUD).