European Commission initiates investigation into imports of ferroalloys

The European Commission (EC) has initiated a safeguard investigation into the import of certain ferroalloys. This is stated in the report of the institution.

The investigation concerns the following products:

• Silicon (2804 69),
• Ferromanganese (7202 11, 7202 19),
• Ferrosilicon (7202 21, 7202 29),
• Ferrosilicon Manganese (7202 30),
• Ferrosilicon magnesium (7202 99 30),
• Calcium-silicon (ex 7202 99 80, ex 2850 00 60).

“The industry is facing exceptional challenges as imports of alloys to the EU have increased due to rising global overcapacity and the attractiveness of the EU’s open market, as well as an increase in trade restrictive measures in other major markets,” the EC said in a statement.

The safeguard investigation was launched following a request from some member states. It will assess whether the increase in imports of these products causes or threatens to cause serious injury to EU producers. Its volumes increased from 1.3 million tons in 2020 to 1.6 million tons by mid-2024.

According to the EC, with existing spare capacity of more than 21 million tons and a planned increase of more than 13 million tons worldwide, the surplus of relevant production will reach an unprecedented level that cannot be absorbed, in particular given the decline in consumption of these products in the bloc.

The prices of these imports significantly undercut prices within the EU, reducing the profitability and market share of local producers, the EC notes.

The results of the investigation are expected within a maximum of nine months from the date of its initiation. The EU can also impose provisional measures for up to 200 days.

Stakeholders, including exporters, importers, consumers of the product concerned, and associations, may provide evidence and participate in the process by notifying the EC within the timeframe specified by the EC.

As GMK Center reported earlier, the European Commission has initiated a functional review of the EU’s safeguard measures on imports of steel products. The review was initiated following a request from 13 EU member states submitted in late November. They believe that such a procedure is necessary due to changes in trade flows. The current measure consists of a tariff quota (TRQ) that applies to imports of 26 categories of steel products into the EU. Imports outside the quota are subject to a 25% duty.