FRANKFURT (dpa-AFX) - Progress on tightening European import barriers kept steelmakers' shares on a recovery path on Tuesday. In Germany, Salzgitter led the MDax with a six percent gain, followed by Thyssenkrupp, which rose nearly four percent. Both stocks are continuing the recovery rally that began in late March, during which time Salzgitter has gained approximately 50 percent.
At the European level, ArcelorMittal and Voestalpine shares benefited with gains of up to 2.6 percent after representatives of EU member states and the European Parliament agreed to significantly reduce the volume of steel that can be imported into the EU duty-free.
The EU's long-standing intention to protect the domestic steel industry from cheap competition from countries such as China is well known. Driven by these prospects, Salzgitter shares hit a high since 2011 at 58.45 euros in February, before a multi-week correction set in, which intensified significantly at the end of February with the outbreak of the Iran war. However, Salzgitter shares have since recouped a large portion of the losses suffered in March.
As announced overnight on Tuesday, the duty-free import quota into the EU will be limited to 18.3 million tonnes per year in the future. This represents a reduction of approximately 47 percent compared to previous levels. According to a statement from EU states, further imports will then be subject to a punitive tariff of 50 percent, double the previous rate. The new rules are intended to protect the European market from global overproduction, the statement said./tih/gl/nas
