EUROMETAL 75th Anniversary: EU steel producers seek early safeguard replacement
European steel producers are campaigning for an early, and intensified replacement of the European safeguard system, Axel Eggert, Director General of industry group Eurofer confirmed at a conference held by steel distribution association EUROMETAL.
Eurofer is pressuring the European Commission to intensify its steel trade protections, endeavouring to maintain a strong presence in Brussels as European authorities consult on avenues for replacement measures to the steel safeguard system.
Speaking at EUROMETAL’s 75th Anniversary conference in Luxembourg, Eggert outlined Eurofer’s desired safeguard policy: intensified tariff-rate quota (TRQ) protections for European producers, with unanimous jurisdiction for the measures across exporting origins. The replacement measures should therefore apply to all steel categories – including an extension to downstream or derivative products.
Eggert stated that despite the most recent review of the safeguards, exporters from Asia were able to absorb the current out-of-quota duty rate of 25% and remain competitive against European domestic productions. This is compounded by the US’s latest tariff offensive, doubling their steel duties to 50%, which threatens to simultaneously deflect imports to Europe from the US market and restrict Europe’s own reciprocal export potential.
While the EU continues to negotiate with the US to reduce said tariffs to zero by the 9 July deadline, Eggert commented that the pair remain “very far away from a deal,” and that he expects that a tariff rate of 25% will be maintained on Europe’s exports given the US’ latest proposal.
To mitigate these pressures, Eurofer is requesting a doubling of the tariff rate to 50% – aiming to reduce overall import penetration into the European market by the same 50%. Eggert confided that while policymakers are increasingly receptive to the idea of intensified restrictions, European civil services are the barrier, overwhelming senior legislators with highly technical arguments that delay progress – a sentiment echoed by Eurofer President Dr Henrik Adam in his own presentation.
The EU’s safeguard measures – originally imposed to address import deflections from US President Trump’s initial section 232 steel tariffs – are due to expire in July 2026, with termination mandated after eight years under World Trade Organization (WTO) rules. Evidently, the safeguards have not achieved an improved trade balance as they approach the deadline, with import market share approaching 30%, and European producers consistently pressured toward – or under – red lines.
Replacing the measures in a manner consistent with WTO principles could require some legal creativity. Eggert hinted that mechanisms under the General Agreement on Tariffs and Trade (GATT) could be stretched to facilitate the new protections. This could include liberal interpretations of the exceptions mechanisms allowing WTO members to protect their “essential security interests” – both the United Kingdom and United States have been framing their latest steel protection initiatives under the umbrella of national security. The EU’s strict – and increasingly isolated – adherence to the WTO framework was criticised by multiple speakers at the EUROMETAL event.
At present, domestic prices for hot-rolled coil (HRC) in particular are heavily pressured by imports, with prices as low as EUR450-470/t CFR reported from Indonesia – around EUR100/t below the latest domestic ex-works offers and trades.
When questioned on the possibility for emergency reviews to the safeguard TRQs before their expiry to address this aggression from new exporters, Eggert stated that no further reviews were scheduled, and that Eurofer was instead pushing for replacement measures to take effect more urgently, from 1 January 2026.
Julian Verden, Managing Director of trading house STEMCOR, suggested that while he generally supported the rational application of trade protection measures, Eurofer’s safeguard policies – past and present – were designed to overly frustrate importers with disguised logistical barriers, such as the timing mechanism for customs clearances. Eggert replied that the safeguard mechanisms were specifically structured to protect domestic capacities, linking protections with the need to support the industrial transition, and address the crisis facing the European steel sector:
“If you want to have decarbonisation, then of course, the safeguard has to be seen as a tool for that purpose.”
According to Eggert, the European Commission’s proposal for the replacement measures will be presented in September.
Tata Steel Europe CEO: deindustrialisation in Europe has already begun
The current state of the European steel industry, as well as the entire manufacturing value chain it supports, is marked by mounting challenges and growing uncertainty. Speaking at the EUROMETAL 75th Anniversary Conference, Henrik Adam, CEO of Tata Steel Europe, emphasised that deindustrialisation is not a distant risk – it is already underway. And the question is whether the European community wants to let it continue and make Europe dependent.
According to Adam, Europe’s industrial sector is the only one globally that is experiencing a consistent downward trend. While other regions are expanding their civil and processing industries, Europe is seeing plant closures and job cuts. “Job losses have already happened, more are being announced, and capacity is shutting down,” he warned.
European steelmakers operate under one of the strictest emissions frameworks in the world. While the global average carbon intensity is around two tonnes of CO2 per tonne of steel, many European mills perform significantly better. However, this comes at a cost, Metal Expert understands.
Europe’s ambition to decarbonise is not matched by global standards, putting EU producers at a disadvantage against imports from countries with lower environmental requirements and production costs.
“We already know of projects being set up to bypass EU rules,” Adam noted.
New low-carbon technologies are under development, but the scale-up from lab to industrial level will take time and require massive investment. Without a robust framework to manage exports and embedded emissions in downstream products, European mills will lose competitiveness after CBAM is fully implemented in 2026.
Energy costs remain one of the largest burdens for European producers. According to Adam, industrial electricity in Europe is, on average, 150% more expensive than in other regions, and industrial gas prices are more than double.
European producers transitioning to EAF technology are particularly exposed. He argued that Europe must establish a long-term, low-cost energy framework – or shift production of energy-intensive goods to regions within Europe where renewable power is cheaper. He cited southern countries like Spain, Portugal, and Greece as potential energy hubs.
Scrap metal is a vital input for low-emission steelmaking, but its availability in Europe is increasingly under threat. Currently, the EU exports around 19 million tonnes of scrap annually, a significant portion of which could be used domestically to reduce emissions, Metal Expert learnt.
“Scrap business is still lacking industrialisation, and also if you all [mills] convert [to EAF] in Europe to use more scrap, scrap will be easily a scarce resource,” he added.
Without safeguards, Europe could face a paradoxical situation – importing high-emission steel while exporting a key decarbonisation input.
Despite the challenges, Adam stressed that Europe still has the tools to secure its industrial future – but only if decisive action is taken. “It’s in our hands to ensure that our children and grandchildren have jobs in Europe that are not just about selling ideas or counting money,” he said.
Vlad Shementov
75 Jahre EUROMETAL: Zukunft gestalten durch systemischen Wandel
Unter dem Leitsatz „Empowering a constantly evolving industry“ feiert EUROMETAL, der europäische Verband des Stahlhandels, sein 75-jähriges Bestehen mit einem internationalen Kongress in Luxemburg. Der Jubiläumskongress brachte Branchenvertreter, politische Entscheidungsträger und Experten zusammen, um über die künftigen Herausforderungen und Chancen einer sich stetig wandelnden Industrie zu diskutieren.
„Industrie stärken heißt, ihr die Fähigkeit zu geben, zu handeln – nicht nur zu überleben“, betont Carlo Thelen, Director General, Chamber of Commerce. Luxembourg. Angesichts massiver Umbrüche sei es heute wichtiger denn je, systemische statt symbolischer Antworten zu finden. Von Regulierung und Energiepolitik über Infrastruktur bis hin zur Fachkräftesicherung – jeder einzelne Hebel zähle, um Resilienz und Wettbewerbsfähigkeit der Industrie nachhaltig zu sichern.
EUROMETAL sieht sich dabei als aktiver Ermöglicher des Wandels. Gemeinsam mit den Handelskammern und anderen Partnern versteht sich der Verband als Brückenbauer zwischen Industrie und Politik und als Impulsgeber für eine zukunftsfähige Transformation.
„Seit 75 Jahren begleiten wir unsere Branche durch technologische, wirtschaftliche und gesellschaftliche Umbrüche. Heute ist klar: Transformation gelingt nur, wenn wir gemeinsam handeln – strategisch, vernetzt und mit dem Willen, echte Veränderungen zu ermöglichen“, so der Präsident weiter.
Der Kongress beleuchtete in Fachpanels und Keynotes unter anderem Themen wie Dekarbonisierung, Digitalisierung, internationale Lieferketten und Fachkräftesicherung. Dabei steht stets der systemische Blick im Mittelpunkt – denn nur ganzheitliche Lösungen schaffen eine stabile und innovative Industrie für morgen.
Über EUROMETAL:
EUROMETAL ist der europäische Verband des Stahlhandels und der stahlnahen Distributionswirtschaft. Seit 1950 vertritt er die Interessen seiner Mitglieder auf europäischer Ebene, fördert den Austausch innerhalb der Branche und begleitet aktiv den industriellen Wandel.
von Hubert Hunscheidt
EUROMETAL’s 75th Anniversary: Tata’s Adam urges reversal of European de-industrialisation
Tata Steel Netherlands Holding BV executive chairman Henrik Adam emphasised the urgent need for Europe to reverse the ongoing trend of de-industrialisation at EUROMETAL’s 75th Anniversary conference in Luxembourg last week, attended by Kallanish.
Advancing technological innovation is critical to sustaining and revitalising the European industrial base. “In Europe we are surviving against global competition from low-cost subsidised countries … We are not asking for protection, we are asking for a fair playing field,” Adams stated.
He highlighted the severity of the European steel crisis, with 26 million tonnes of steel capacity closing between 2008 and 2023, and the loss of 25% of its steel workforce, with an additional 18,000 job cuts announced in 2024.
To remain competitive, Europe must strengthen trade defences against unfair practices, review and update the Carbon Border Adjustment Mechanism (CBAM), address high energy costs, and improve scrap availability.
Access to abundant fossil-free electricity is essential. Energy demand in the steel sector, which averaged 75 TWh/year between 2010 and 2020, is forecast to more than double to 165 TWh by 2030 and reach 400 TWh by 2050.
Lowering energy costs, increasing green subsidies, and robust trade protection are critical. Without effective measures, de-industrialisation will accelerate, Adams warned. However, he noted a clear political commitment at the European level to preserve the industry.
Global excess steel capacity is both structural and significant. Europe must prevent “CO2 free riding” through resource shuffling and circumvention, safeguard European steel exports, and avoid the relocation of downstream companies. New steel capacities being added in countries like India and China over the next decade could undermine Europe’s climate efforts, Adam concluded.
Natalia Capra France
Julian Verden: European coil to rebound despite intense volatility
Increased market volatility and sharp global price swings are heightening uncertainty across the steel sector, according to Stemcor managing director Europe Julian Verden. However, European coil prices should recover during the second half of the year, supported by strong European trade protection measures.
There is “a massive amount of government interference,” Verden proclaimed at last week’s EUROMETAL 75th Anniversary conference in Luxembourg attended by Kallanish. “This is making the scope in which we have to work very, very difficult.”
Safeguard measures remain opaque, and the absence of real-time data continues to create uncertainty over when goods can be cleared through customs, he continued. The imminent confluence with Carbon Border Adjustment Mechanism (CBAM) regulations is only adding complexity. While these protective mechanisms are intended to shield Europe’s industries, they have instead imposed heavy financial burdens on businesses, undermining profitability and stifling investment.
Verden expects a sharp uptick in hedging activity across multiple segments, including iron ore, freight, steel, and carbon credits, as firms look to manage mounting volatility.
There is “enormous growth” of capacity in China, he added. Crude steel output in the country fell just 1.7% year to date through May, amounting to 431 million tonnes. Full-year production is forecast to edge just below 1 billion tonnes, a marginal 1% annual drop.
This is not enough to stop China’s increase in exports. Chinese steel exports are on pace to exceed 120 million tonnes in 2025, a volume Verden calls “far too much material spurting onto the market.” This flood is distorting global pricing and disrupting supply chains.
Year to date, over 40.47mt have already left Chinese ports. This export boom buys short-term relief for Chinese mills but creates global price pressure. Without a recovery in domestic demand, China faces a potential structural reckoning, Verden noted.
A global reallocation of steel production capacity is underway, with a major shift from the traditional leading producers such as China, the US, Europe, and Japan, towards India.
Despite persistent raw material constraints, India is positioned to double its capacity to 300mt in the coming years. India has produced over 67mt of steel year to date, marking a modest, 0.2% year-on-year increase. Meanwhile, first-quarter GDP growth reached 7.4% year-on-year, underscoring macroeconomic resilience. However, the ramp-up in domestic steel production may act as a drag on prices.
The US economy is outperforming many of its global competitors, but steel consumers, particularly major North American users and manufacturers, face significantly higher input costs. These buyers are paying 30-40% more for steel in the US market, a price differential that is unsustainable over the long term, Verden observed.
Unlike in Europe or the UK, where imports are diversified across numerous origins, US tariffs create a more insulated and constrained market.
“We do have a strong local steel industry [in Europe], but that has to be efficient, that has to be managed and invested in,” Verden commented. Trade barriers ultimately undermine long-term investment and are inflationary, raising input costs, pushing up producer prices, and contributing to elevated interest rates. Without coordinated policy alignment between the European steel industry and government stakeholders, the sector risks falling behind, Verden concluded.
Natalia Capra France