The expert did not rule out the growth of steel prices in the EU in case of limiting imports from China
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- The expert did not rule out the growth of steel prices in the EU in case of limiting imports from China
If the European Union (EU) imposes restrictions on steel imports from China or increases import duties on it, steel on the European market will become more expensive, according to Freedom Finance Global analyst Vladimir Chernov. He told Izvestia on September 23.
On the eve of the Financial Times reported that European producers appealed to the EU authorities to stop the sharp increase in steel imports from China.
Chernov explained that European countries have increased purchases of Chinese steel to diversify supplies, as they need to replace Russian metals. At the same time, steel from China is the most competitive, because its cost is lower than the cost of production in the EU countries. In addition, the PRC is the largest steel producer in the world, and it is forbidden to export even Russian steel products from third countries to the EU.
"Another additional factor in increasing steel purchases may be the expectation of accelerating economic growth in the eurozone and, consequently, the consumption of metals in industrial production against the background of the beginning of the cycle of easing monetary policy of the ECB (European Central Bank. - Ed.)," the expert added.
According to the analyst, since the European markets receive cheaper steel, its consumers should be positively affected by the increase in purchases in China, because they save financial resources, reducing expenditures on steel.
"At the same time, European steel producers will incur financial losses if they give a discount to increase competitiveness with Chinese producers and sell their steel cheaper than the cost of its production," he specified.
In case of establishing restrictions on steel purchases from China or increasing import duties on it in the European market, this product will become more expensive, the expert suggested.
"Against this background, the prices of wholesale producers (PPI) will go up, which will eventually lead to an increase in retail prices for final products for consumers, that is, to the acceleration of inflation in the region", - concluded Chernov.
Earlier, on September 20, RIA Novosti reported that among unfriendly countries among the most dependent on Russian minerals were Germany, the United States, Finland and Lithuania. The agency also specified that the most demanded was Russian aluminum. In addition, the states also buy titanium, cobalt, ammonia and palladium from Russia. Mikhail Belyaev, a candidate of economic sciences and financial analyst, noted that Western countries produce such raw materials in insufficient quantities.
