Safeguard measures imposed earlier this month by the European Commission (EC) could send import volumes and prices either way in the near term, says analyst Andreas Schneider of Stahlmarkt Consult. He deems it unlikely, though, that Europe will see the sort of extreme price movement witnessed in the US resulting from Section 232.

As reported by Kallanish, spot market price increases have recently occurred for several products in Europe, which many sources believe is the consequence of the EC measures and their mere announcement. The increases are continuing, which in itself is unusual during summer months.

On the other hand, the EC’s announcement has brought to an end a long period of uncertainty among importers. For some months the doors will be open to deliver into the EU without extra duties. This might well cause a rush among suppliers to be the first to deliver duty-free volumes, resulting in pressure on prices, at least temporarily, Schneider observes.

In this scenario, he underlines that “…the steel market is susceptible to cyclical exaggerations in both directions, and it is not only hard facts but also sentiment that creates the picture.”

Still, Europe will likely not see the sort of extreme hikes seen in the US, where prices have followed a domestic trend, while price development in Europe is much more connected with the world market, Schneider concludes.