EUNIRPA urges European Commission to repeal safeguards on wire rod imports
BRUSSELS (Scrap Register): The European Non-Integrated Wire Rod Processors Association (EUNIRPA) has urged the European Commission (EC) to lift EU safeguards or sharply raise tax-free quotas to protect the wire sector.
According to the announcement from EUNIRPA, they would be forced into bankruptcy if the EU safeguards didn't willing to change because the EU safeguards severely affected the supply of imported wires and caused serious harm to the processors.
There was a case in history, Sotralentz, once the second largest non-blast furnace wire processor in the EU, went bankrupt in September 2016 due to the impact of EU safeguard measures on the wire industry.
EUNIRPA believed that the EU had taken no account on the special nature of the wire market when they took safeguard measures. There were over 50% of the wires in the EU which were imported from non-EU countries because of the safeguarding policy.
The association mentioned that the situation was at a critical juncture and policymakers were urgently needed to support the abolition of safeguards imposed on wire products or at least a substantial increase in duty-free quotas, which should be increased by 20% rather than 5%, based on the average of wire imports from 2016 to 2018.