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Meanwhile, Ukrainian metallurgical enterprises are seriously concerned about the changing situation in the global metal products markets due to US 25% duties on steel imports, in particular, from the EU.
In March, the US imposed additional import tariffs on steel (25%) and aluminium (10%) with a view to protecting its domestic market. Although these tariffs apply to all countries, a temporary exemption was granted to Canada and Mexico, which will apply until a new NAFTA deal is signed.
Tariffs were also suspended for the EU, Australia, Argentina and Brazil until early May, while talks continued. Other countries can negotiate exemptions by convincing the United States that their products are unique for the US market, and pose no threat to the country’s national security.
According to the Ukrmetalurgprom association, Washington's decision of was expected, but it carries significant risks for Ukrainian steel products. If steel supplies to the US from Ukraine make up 1.3%, then to the EU more than 30%. Moreover, a few weeks ago Turkey also announced a protective investigation after the introduction of protective measures by the US, the association believes.
The head of the association Oleksandr Kalenkov believes that the markets of the EU and Turkey are priority for the supply of Ukrainian steel products. "More than half of total exports of Ukrainian steel products worth over $5 billion fall under the risks of protective measures of the EU and Turkey," Interfax quoted Kalenkov as saying on June 1.
At the same time, the NBU believes that there will be little direct impact on Ukraine from the Washington import tariffs imposed on steel and aluminium, since in 2017 the US accounted for only about 2% of total Ukrainian exports, and about 6% of exports of ferrous metals and products made of them.
"However, secondary effects from any countermeasures taken by other countries could carry more profound adverse implications for Ukraine by
8 UKRAINE Country Report July 2018 www.intellinews.com