Responsiblesteel partners with Europe and China on global low-emission steel standards
At the COP30 summit held in Belém, Brazil, following calls for greater consistency and clarity in carbon standards, Responsiblesteel announced partnerships with Europe’s Low Emission Steel Standard (LESS) and China’s Low Carbon Emission Steel Standard (C2F Steel). These two standards cover approximately 60 percent of global steel production.
Responsiblesteel’s agreements with Chinese and European steel standards expand a common approach to greenhouse gas measurement and classification, covering more than half of global steel production. The partnerships bring together producers, consumers, and innovators under harmonized definitions of low-emission steel, accelerating the sector’s journey toward deep decarbonization.
Steel accounts for around 7–9 percent of global greenhouse gas (GHG) emissions, making it one of the largest industrial contributors to climate change. The agreements strengthen efforts to facilitate trade and investment in decarbonized steel while ensuring consistency and reliability in sustainability standards worldwide.
Achieving meaningful progress in decarbonization requires collaboration across borders and standards. Today’s agreements send a strong message of global consensus to governments regarding the “scrap-variable” approach to low-emission steel classification. This approach acknowledges that recyclable steel will be limited in the coming period and is designed to promote decarbonization across all technologies.
Already recognized by the G7 and incorporated into international standards, this approach provides a practical, science-based solution supporting the global transition to low-emission steel without compromising integrity. It prevents unproductive competition for limited scrap supply, encourages decarbonization across all steel production routes, and supports technology-neutral solutions compliant with international trade rules, removing unnecessary barriers to trade.
Responsiblesteel’s greenhouse gas accounting methodology and classification system are part of the ‘International Production Standard,’ developed through a transparent, multi-stakeholder process with participation from over 180 individuals, including more than 70 business and civil society organizations and steel producers operating blast furnace (BF) and electric arc furnace (EAF) facilities, covering a broad ESG spectrum.
Responsiblesteel CEO Annie Heaton stated: “Responsiblesteel is creating a global framework that enables comparability to establish the foundation for a global market in low-emission steel. A large portion of global steel production capacity now has the potential to use equivalency mechanisms to define low- and near-zero-emission steels. These agreements pave the way for the first real examples of interoperability between standards, providing clarity for steel producers, buyers, investors, and policymakers in a groundbreaking development.”
Jiang Wei, president of the China Iron and Steel Association (CISA), emphasized: “Collaboration is essential to harmonize greenhouse gas emission standards and accelerate the decarbonization of the steel industry. This agreement is a groundbreaking step toward that goal. CISA’s decision to collaborate with Responsiblesteel reflects our mutual commitment to steel standard principles, proven results achieved by both organizations in this area, and our shared dedication to reliable, science-based solutions. We look forward to working closely with Responsiblesteel to advance the objectives of this agreement.”
LESS secretary general Carmen Ostwald stated: “LESS is proud to partner with Responsiblesteel in this groundbreaking initiative. Our shared commitment to reliable, science-based solutions will provide much-needed clarity in greenhouse gas emissions comparison and transparency in the decarbonization process of steel production. This agreement represents a critical step toward creating global markets for low-emission steel and accelerating the sector’s transition to net zero.”
Responsiblesteel board chair Gerry Tidd emphasized: “Two dominant steel-producing regions, China and Europe, play a vital role in decarbonizing the steel industry. Responsiblesteel is proud to act as a global, multi-stakeholder facilitator, using its trusted standard to help industries achieve genuine decarbonization.”
The agreements also set an example for the Steel Standard Principles (SSPs) launched at COP28. Responsiblesteel has taken a leading role in developing interoperability between standards in collaboration with more than 60 SSP signatories.
Leading industry figures and organizations also support the agreements
Philippe Aubron, global head of automotive at ArcelorMittal, stated: “ArcelorMittal strongly supports the collaboration between Responsiblesteel, CISA, and LESS to enhance interoperability between the new standards. It is essential to create a unified framework for international reference standards to accelerate steel decarbonization and provide transparency and reliability in global markets. We believe this initiative will build trust, drive innovation, and ensure the industry meets its climate commitments consistently and rigorously.”
Wang Qiangmin, chief representative for carbon neutrality at China Baowu Steel Group, stated:
“The signing of this cooperation agreement is a key milestone for the Chinese steel industry in actively applying green development principles and integrating deeply into global low-carbon emission management. We will use this opportunity to jointly promote international recognition of low-carbon steel standards, establish a green supply chain system, and contribute to the low-carbon transformation of the global steel industry with Chinese expertise and strength.”
Frederik Van de Velde, CEO of ArcelorMittal Belgium, stated: “This partnership is groundbreaking for our sector. By aligning our standards, we not only strengthen LESS and Responsiblesteel but also establish a global consensus on the definition of low-emission steel. ArcelorMittal is proud to support this initiative, which will accelerate our joint journey toward a sustainable steel sector.”
Gunnar Groebler, CEO of Salzgitter AG and chair of the LESS board, emphasized: “Aligned standards form the backbone for meaningful change in steel production. This tool ensures companies can adopt sustainable practices with confidence while providing customers with the transparency needed to make informed decisions. Mutual recognition between standards is key to building trust in the market.”
Riccardo Savigliano, head of energy systems and decarbonization at UNIDO, stated: “These agreements represent an important step toward globally harmonized standards for low- and near-zero-emission steel, which are critical for advancing decarbonization across the sector.”
Susanne Larsson, CFO and CSO of SKF, stated: “Unified, reliable, and interoperable standards are vital for making informed sourcing decisions in complex and globalized value chains like ours. These agreements will provide the market with much-needed clarity and consistency, strengthening the foundation for genuine climate action in the steel sector.”
John Haffner, deputy sustainability director at Hang Lung Properties, stated: “Carbon emissions from steel are a fundamental challenge in the real estate sector. We welcome and applaud this announcement as the first real estate company in China to join the Climate Group’s SteelZero initiative. Promoting decarbonization across all steel production routes and establishing reliable, interoperable standards will accelerate low-carbon steel production and provide clarity and momentum to demand-driven initiatives in China and beyond.”
Esther Finidori, sustainability director at Schneider Electric, stated: “Harmonizing global standards for low-emission steel is essential to scale reliable supply and sustainable trade. Decarbonizing supply chains requires standards that are harmonized, high-integrity, transparent, traceable, and measurable. We are committed to building sector coalitions, establishing long-term partnerships, and ensuring the standardization necessary to accelerate sustainable innovation.”
Mike Peirce, executive director of system change at Climate Group, stated: “This announcement is a strong example of what collaboration can achieve. By shaping standards within a common framework, these organizations are enabling greater alignment on how we measure and classify emissions in steel, a sector critical for global decarbonization.”
Sameen Khan, senior director of steel at Climate Group, stated: “SteelZero was established to accelerate demand for net-zero steel, and this announcement represents a vital step toward that goal. Steel buyers seeking low-carbon materials need clarity and comparability at a time when multiple decarbonization standards are emerging. Reducing barriers to measurement and progress is critical to helping companies make informed choices about where to source low-emission steel. This collaboration promises to provide that clarity.”
Responsiblesteel continues to be the single, multi-stakeholder standard for sustainability in steel worldwide, with 90 certified organizations.
Acciaierie d’Italia has become a strategic partner of the H2Loop Project
Acciaierie d’Italia has begun its work as a strategic partner in the European H2Loop project, which aims to decarbonize the steel industry.
The Research & Development Center of the Taranto plant, operating under Acciaierie d’Italia in Amministrazione Straordinaria, has completed the Kick-Off Meeting of the European H2Loop Project after two days of intensive work. The project aims to develop innovative solutions for sustainable hydrogen production and the decarbonization of the steel sector, and is co-funded by the European Commission under the RFCS–BIG TICKET program.
Acciaierie d’Italia’s R&D Center is among the project’s main partners. H2Loop is designed to support research and innovation in the steel sector in line with the objectives of the European Green Deal, strengthening Europe’s scientific excellence, industrial competitiveness, and sustainability.
The four-year project brings together several international partners, including: VDEh-Betriebsforschungsinstitut GmbH (BFI) from Germany, with over 50 years of steel industry expertise, Rouge H2 Engineering AG from Austria, developer of the core technology, Politecnico di Torino, a leading academic institution in engineering.
The central goal of H2Loop is to evaluate the feasibility and efficiency of applying a patented chemical looping hydrogen (CLH) process to produce hydrogen from metallurgical gases. This approach aims to accelerate the steel industry’s sustainable transition, reduce CO₂ emissions, and integrate hydrogen production into industrial applications.
The Taranto site has been proposed to host the pilot applications, reinforcing the strategic role of the R&D Center in researching advanced technologies for producing high-purity hydrogen from blast furnace gas. Project partners have already begun initial technical activities, including inspections of facilities and specialized laboratories.
H2Loop stands out as a pioneering initiative aimed at shaping a more sustainable and competitive European steel industry. The project strengthens Taranto’s position as a leader in research and technological innovation within the steel sector and contributes to Europe’s energy transition and Green Deal targets.
EU imposes safeguards on silicon and manganese-based ferroalloy imports
The European Commission said in a statement Nov. 18 that it has approved definitive safeguard measures on imports of certain ferroalloys into the EU, including from Norway and Iceland, but will conduct trimonthly consultations with the Nordic countries, while reviewing the impact of the measure that will be in place for a period of three years, expiring on Nov. 17 2028.
The Commission said it has taken an important step to protect the EU’s ferroalloy industry, which employs 1,800 people, by introducing country-specific tariff rate quotas, or TRQs, that are meant to reduce the EU’s duty-free imports of ferro-manganese, ferro-silicon, ferro-silico-manganese, and ferro-silico-magnesium to 75% of their former volumes.
Between 2022 and 2024, the EU imported an average of a little under 1.4 million metric tons/year of the four ferroalloys, with ferromanganese, ferrosilicon, and ferrosilicomanganese comprising 28%, 34%, and 37% of the tonnage, respectively. Norway, India, and Iceland provided 535,000 mt, 273,000 mt, and 71,000 mt, and combined accounted for 65% of the total volume. The bulk of the remaining imports came from South Africa, Malaysia, Zambia, and Kazakhstan.
For the first 12-month period that the safeguard would be in effect, the top three suppliers — Norway, India, and Iceland — have been allocated TRQs of approximately 401,410 mt, 197,030 mt, and 53,060 mt, respectively; the duty-free allowances for other suppliers represent cuts of the same proportion, according to the Commission’s notification.
Imports exceeding the quota volumes may enter the EU if their price exceeds the price thresholds, established at Eur1,316/mt for ferro-manganese, Eur2,408/mt for ferro-silicon, Eur1,392/mt for ferro-silico-manganese, and Eur3,647/mt for ferro-silico-magnesium. Lower-priced out-of-quota imports become subject to the duty equivalent to the difference between the net free-at-Union-frontier price and the thresholds.
The safeguard measure should be sufficient for EU ferroalloy producers to regain their home market share, which exceeded 30% four years ago, Marco Levi, CEO of Ferroglobe and President of Euroalliages, the European association of ferro-alloys and silicon producers, told Platts, part of S&P Global Commodity Insights, in a recent interview.
The decision to impose TRQs, along with the minimal prices, follows a safeguard investigation initiated in December 2024, which concluded that an influx of these ferroalloy imports into the EU is causing injury to the local industry. Between 2019 and 2024, imports increased by 17%, resulting in a fall in the market share of EU producers from 38% to 24%.
Ferroalloys are essential for producing steel, enhancing its strength, hardness, and corrosion resistance, and are crucial in the construction, automotive, aerospace, and military industries, and so the safeguard measure aims to strengthen the resilience of the wider European supply chain, according to the Commission.
EU HRC market, demand visibility remain weak
European hot-rolled coil prices remained stable Nov. 18, as market participants digest the recent provisional CBAM Benchmark value announcement, but pointed to a limited shift in fundamentals.
The European flat steel market remained largely illiquid on the day due to near-term buying interest, as market participants cited a continued trend of higher stocks and limited downstream insight into 2026 demand trends.
Despite the release of the provisional CBAM benchmark values providing additional clarity on the potential costs of imported HRC in 2026, sources remained skeptical over any immediate impact on current market dynamics.
“Stocks are running high, and we don’t see a lot of people actively in the market looking to buy,” said one mill source. “We expect further price increases, but without demand, it is difficult to achieve.”
Discussing the import market, the same source pointed to a high level of financial risk, despite offers being reported on DDP basis, with the seller handling the associated CBAM charges. “Nobody knows the end prices, and [although] we’ve heard many import offers, they are still very risky still so I’m not sure if buyers would be willing to go for it.”
Platts assessed HRC in Northwest Europe at Eur610/mt ex-works Ruhr, and in Southern Europe at Eur600/mt ex-works Italy, both stable day over day.
Platts assessed imported HRC at Eur500/mt CIF Antwerp in the north and Eur500/mt CIF Italy in the south, both unchanged day over day.
SSAB partners with EAB to expand use of fossil-free steel in industrial applications
Swedish specialty steelmaker SSAB has announced a strategic partnership with Sweden-based EAB Group aimed at supplying fossil-free steel, including SSAB Zero™, for use across the latter’s core business areas such as warehouse fittings, doors and steel-building solutions.
In the partnership, EAB has already adopted SSAB Zero™ in the machine chassis of its warehouse solution, the Radioshuttle™, which is internationally deployed for storage optimization and energy-efficient operation. The collaboration underlines both companies’ shared commitment to accelerate the industrial application of climate-friendly steel products.
EAB’s CEO Per-Åke Andersson said that the partnership symbolizes a unified vision to move steel into a sustainable future, a journey they undertake together.
With this partnership, EAB reinforces its sustainability roadmap which includes halving its carbon emissions over the next decade. The integration of fossil-free steel within its product lines aligns EAB’s manufacturing and supply chain practices with its long-term climate objectives.
Moving forward, the collaboration is expected to drive developments not only in warehouse systems and steel-buildings, but across sectors where high-performance, low-emission steel is demanded. By combining SSAB’s advanced material solutions with EAB’s global manufacturing footprint, the partnership is set to demonstrate scalable industrial deployment of fossil-free steel.
Recovery unlikely before mid-2026 unless macroeconomic and policy conditions improve
SteelOrbis talked to EUROMETAL president Alexander Julius about the challenges the EU steel industry is facing.
“The European steel industry is ready to lead on sustainability — but it cannot do so alone. We need coherent policies that protect, empower, and enable all players in the value chain — from mills to service centers, from traders to end-users. Only then can we turn the green transition into a European industrial success story.” — Alexander Julius, EUROMETAL President
How would you describe the current steel demand trends in the EU steel market across major sectors (construction, automotive, machinery, etc.)?
Steel demand in Europe remains weak and uneven across sectors. The construction industry – traditionally the largest steel consumer – is suffering from high interest rates, lower public investment and a slowdown in housing and infrastructure projects.
The automotive sector, after a short rebound post-pandemic, has again softened, reflecting both subdued consumer confidence and the complex transition toward electric vehicles. Machinery and mechanical engineering remain relatively resilient, supported by export activity, but here too we see investment hesitation.
Overall, we estimate that European steel demand in 2025 is still below pre-pandemic levels, and recovery is unlikely before mid-2026 unless macroeconomic and policy conditions improve.
How are high energy prices affecting output, investment and competitiveness?
High and volatile energy costs remain one of the most severe structural challenges for the European steel value chain. Even though prices have moderated compared to the 2022 peaks, Europe continues to face a persistent energy cost gap of two to three times compared to Asia and the US.
This cost differential is discouraging new investment, reducing margins and eroding competitiveness along the entire supply chain – from primary steelmaking to distribution and fabrication.
Many downstream users are scaling back production or relocating certain processes outside the EU. If not addressed through a coherent energy and industrial strategy, this could lead to long-term deindustrialisation and loss of strategic capacity.
Do you foresee further consolidation or restructuring in the European steel industry?
Yes, further consolidation and restructuring are very likely – not only among steel producers, but also across the entire distribution, service center and processing landscape.
Companies are increasingly seeking to optimize scale, reduce fixed costs and realign their business models to prepare for the green transformation and adapt to a low-margin, high-volatility environment.
Recent data from the EUROMETAL Financial Benchmark for Steel Service Centers confirm this trend: 2024 results were significantly worse than expected, with widespread pressure on margins, inventories and working capital. 2025 is anticipated to be even more challenging, particularly for independent SMEs who are struggling with low demand, cheap imports of steel derivatives and rising compliance burdens (including CBAM and DPP requirements).
However, consolidation must not come at the expense of market diversity and supply resilience. Europe’s steel distribution sector is composed primarily of small and medium-sized enterprises, which play a vital balancing role in connecting supply and demand, especially in regional and specialised markets.
Preserving a competitive, flexible and diversified distribution network is essential for innovation, customer service and ensuring that green and digital transitions do not lead to over-centralisation or the erosion of supply chain responsiveness.
What are the effects of geopolitical developments on trade routes?
Geopolitical fragmentation has profoundly reshaped global steel trade routes. The war in Ukraine, regional instability and shifting alliances have increased uncertainty, raised transport costs and disrupted established supply chains.
At the same time, US steel tariffs and trade restrictions have caused a redirection of steel and steel derivatives – originally destined for the US – toward Europe. We are now seeing a growing influx of derivatives, such as fabricated steel components and semi-finished products, entering the EU market outside the scope of traditional trade defence measures, and often bypassing CBAM and safeguards.
This surge is compounding an already difficult situation where Asian overcapacity continues to displace domestic EU output, depress prices and undermine the viability of local manufacturing.
We are also witnessing a rising trend of circumvention practices – including false origin declarations, re-rolling in third countries and tariff reclassification – particularly for steel derivatives.
These developments underline the urgency for stronger customs enforcement, harmonised rules of origin and robust traceability systems, especially with CBAM implementation starting in January 2026 and the Digital Product Passport (DPP) expected to follow.
Without clear and enforceable controls, Europe risks becoming the dumping ground for surplus high-emission steel and derivatives that are no longer accepted in more protected markets.
What are your expectations for steel demand and prices in the short to medium term?
In the short term, steel demand is expected to remain weak through winter 2025-26, with modest restocking early next year.
Price levels are likely to fluctuate within a narrow band due to subdued demand, high inventories and strong import competition.
Looking to 2026, a gradual recovery could come from infrastructure, renewable energy and defense investments, but that depends on access to financing and public procurement reform.
Decarbonisation costs will also start to be more visible in pricing as CBAM enters its enforcement phase in January 2026, making the cost of carbon an integral part of market dynamics.
Are you optimistic or cautious about the EU steel sector’s medium-term competitiveness?
We remain cautiously optimistic – provided Europe can reconcile its climate ambitions with industrial competitiveness.
European companies have the technology, innovation and commitment to lead the global green steel transition. But this requires predictable regulation, affordable energy and fair trade conditions.
If these pillars align, Europe can remain competitive on value, quality and sustainability.
If not, we risk a ‘green paradox’ – achieving lower emissions at the expense of losing industrial production and jobs to regions with weaker standards.
How do you evaluate the latest announcement from the EU regarding safeguard policy?
The European Commission’s post-safeguard proposal (COM(2025)726), presented in early October, confirms that trade defence remains high on the EU agenda – but it also raises concerns for the downstream sector.
While safeguards were designed to stabilise the market, the new post-safeguard framework risks shifting additional pressure onto distributors, service centers and manufacturing SMEs, who already face declining demand and intense import competition.
Critically, steel derivatives remain outside the scope of current measures, despite their growing role in undermining EU industrial competitiveness.
These products – from assembled tubes and components to fabricated steel parts – are entering the EU unchecked, often containing dumped or high-emission steel that escapes both safeguards and CBAM coverage.
This loophole must be addressed urgently to prevent further erosion of Europe’s manufacturing base.
Are these trade measures effective in ensuring a level playing field, or do they distort competition?
Trade measures are necessary to defend fair competition, but their design is key.
Today’s framework often protects upstream producers while exposing downstream users to restricted supply and price volatility.
For a truly level playing field, we need a balanced approach that targets unfair practices without penalising legitimate industrial users.
EUROMETAL supports country-specific quotas and Melt & Pour origin rules to close existing loopholes and ensure that every tonne of steel placed on the EU market meets the same environmental and social standards. But, if imported derivatives do not become part of those measures to the same extent, the proposed EU measures will have an immediate negative effect on the EU downstream and manufacturing industry accelerating the de-industrialization of Europe, leaving EU steelmakers without consumers.
What do you think the main challenges of CBAM are and what effects do you anticipate on trade flows?
The full implementation of CBAM in January 2026 will be a turning point for global steel trade – and for EU distributors in particular.
The concept can be right, but the execution remains complex. Importers face enormous challenges in collecting verified emissions data, navigating multiple reporting systems, missing default values, late sale of certificates and ensuring alignment with customs procedures.
This asymmetry of information and timing poses a significant operational and financial risk, especially for small and medium-sized traders and service centers.
In parallel, many steel derivatives and processed products remain outside CBAM’s current scope, creating an incentive to shift emissions-intensive production further downstream – and potentially leading to circumvention through assembled or fabricated goods.
To succeed, CBAM must evolve into a comprehensive, transparent and enforceable system, fully integrated with customs procedures and extended to cover the entire steel value chain – including downstream products and steel-containing goods.
Without this, CBAM risks distorting trade flows, penalising compliant actors and failing to deliver its environmental objectives.
Do you think current EU funding mechanisms are sufficient to support the green transition in steel?
Current funding mechanisms – such as the Innovation Fund, ETS revenues and national recovery plans – are essential but insufficiently accessible and fragmented.
Most support is directed toward large upstream producers, while distributors, processors and fabricators – the ‘missing middle’ of Europe’s industrial ecosystem – remain largely excluded.
A sustainable transition requires investment at every stage of the value chain. That means supporting logistics, warehousing, digitalisation and certification infrastructure – the building blocks of a green steel market, not just green production.
How do you see the balance between environmental targets and global competitiveness?
This balance is the defining challenge for Europe’s industrial policy.
The steel sector is fully committed to achieving climate neutrality, but ambition must be matched by pragmatism and global coordination.
If environmental regulation advances faster than investment support and trade defence, Europe risks carbon leakage in disguise – where emissions are simply outsourced to third countries.
The right path forward lies in aligning environmental targets with competitiveness tools: stronger CBAM enforcement, fair trade measures and inclusive funding for the entire supply chain. Only then can Europe lead the global green steel transition without sacrificing its industrial foundation.
EU to publish CBAM benchmarks after ETS revision in 2026
The European Commission has confirmed that final Carbon Border Adjustment Mechanism (CBAM) benchmarks will only become available after the revision of EU Emissions Trading System (ETS) benchmarks in 2026.
The update was shared at a CBAM event held by the Japan Business Council in Europe and reported by Germany-based consulting company carboneer CEO Hendrik Schuldt.
A default CBAM benchmark will reflect the “typical production process” for each category of CBAM goods. Verified supplier data may be used to demonstrate alternative production processes, which could lead to different applicable benchmarks representing the free allowances a producer would receive if those processes were carried out in the EU.
Updated embedded emissions rules, default values and price list
The Commission said that CBAM emission calculation rules will see slight modifications compared with the transitional phase.
Default values will be published in the fourth quarter of 2025 as an annex to the implementing regulation on emission calculation. These default values will be established for all trading partners. No details were provided regarding potential mark-ups, other than the requirement that they be sufficiently high to avoid benefiting emission-intensive producers.
Meanwhile, in 2026, the Commission will collect data on actual carbon prices paid in exporting countries, including discounts and rebates. Default carbon prices will be published in 2027 through the CBAM registry. Documentation requirements for proving actual carbon prices will be drafted with third-country authorities.
Verification rules to closely mirror EU ETS
According to carboneer’s analysis of the leaked draft rules, CBAM verification procedures will replicate ETS practices to establish parity between EU and non-EU producers:
- Non-EU producers are required to monitor and report emissions in accordance with standardized CBAM methodologies.
- Verifiers perform risk assessments, conduct on-site or virtual plant visits, and carry out detailed reviews of reported data.
- If verifiers identify material misstatements or non-conformities, the verification fails and the data cannot be used in the importer’s CBAM declaration. Non-material issues must be addressed and corrected before the final verification report is issued.
- Verification is required for each reporting period, typically once per year. Importers may rely on positive verification reports or those with minor issues that have been rectified when preparing their annual CBAM declarations.
Future scope expansion delayed to 2027
The Commission stated explicitly that no CBAM scope extension will take effect before 2027. Pending items include possible inclusion of additional industrial goods, addressing the steel scrap loophole, also postponed until 2027, and review of indirect emissions pricing for iron and steel and for aluminum, which will be included in the review report at the end of the year. While no immediate legislative proposal is expected, indirect emissions are considered increasingly likely to be added.
The Commission stated that there will be no general support scheme for exporters. Targeted support will instead be based on carbon leakage risk and on the climate-related efforts of companies. Further details are expected after the ETS review next year. The mechanism may resemble the EU Innovation Fund model, providing project-specific funding. Additional clarification is expected in the coming weeks.
Europe low-emission steelmaking relocations have serious implications
Europe should redraw its steelmaking map based on today’s competitive conditions, but choosing where to build new plants will be a difficult decision with political and social repercussions, said panellists at Kallanish Green Steel Strategies in Brussels last week.
“We should not repeat history,” Primetals Technologies vice president converter steelmaking Gerald Wimmer said, referring to where new steel plants should be built. “We should start something new.” Facilities should be placed close to the coast, with good inbound and outbound logistics. “While from the logistics point of view, energy will still seem to be the easiest one, because a cable and the hydrogen pipeline is easier to be routed than a harbour and the ship,” he added.
Land constraints will be a key driver of decoupling ironmaking from steelmaking, which has historically been done captively in Europe. “I think steelmakers that are making the transition are going to have new headaches. Investing into an EAF is one, managing future scrap [supply] is another one. Why would you absolutely want to have your own direct reduction, and all the electricity and hydrogen headaches that come with it?” asked GravitHy commercial director Anne Cécile Marie.
Energy will nevertheless play a key role in investment location, with electricity prices diverging across Europe, and the Nordics, France and Iberian Peninsula being singled out as the most competitive locations.
However, these investments will have profound implications. “Do we [Europe] dare to really pick our winners [which countries to invest in new steel capacity]? It’s a big elephant in the room, effectively, because there’s obviously lots of things at stake … It’s jobs, it’s security of supply, it’s all these things combined, right? And as a local politician, even, it’s a very difficult thing to do,” said McKinsey & Company engagement manager Michiel Nivard.
The EU’s diverse political and social landscape makes the job harder. “There’s a very difficult discussion and choice to be made by, you know, maybe here in Brussels, elsewhere, different shareholder meetings, and that is a very difficult coordination problem,” he continued. The same decision in jurisdictions other than the EU is likely to be a more straightforward one, he added.
Industry will need smart energy investments to compete. “We already see now that the cheapest new kilowatt hours are wind and solar, but value as such belongs to those who can balance them,” noted Ramboll market director green energy transition Anna Pekala. “So it’s about the combination and being able to develop a balancing portfolio with having, let’s say, solar or onshore wind, combined with batteries and flexible nodes and also some other firm capacity, like hydro gas, nuclear as well.”
“So, making renewables together with the storage options feasible is probably the biggest challenge … Something like a flexible gas peaker, I mean, it’s not a dirty word, right?” asked Nivard. “We can really just use those things as well to really kind of, at least bridge this whole transition phase into kind of a healthy and sustainable electricity grid.”
Adam Smith Austria
Assofermet urges EU ferroalloys safeguard revision
Italian steel trade association Assofermet is urging the Italian government to seek adjustments to the European Commission’s imminent safeguard measures on ferroalloy imports. The current proposal risks creating significant supply distortions for EU importers and downstream industries, it warns.
The new safeguards, covering ferromanganese, ferrosilicon, ferro-silico-manganese and ferro-silico-magnesium, are expected to be published in the EU Official Journal by 18 November. The investigation was launched in December 2024 following requests from several member states.
The association stresses that a 25% reduction in available import volumes would put considerable pressure on the market, given that European ferroalloy production has been insufficient to meet domestic demand for many years. Importers would suffer, but the repercussions would extend to steelmakers and foundries.
Assofermet recommends curbing the import reduction to 20% rather than the 25% foreseen in the draft regulation. It also calls for the introduction of a carry-over mechanism and a more realistic annual liberalisation rate of 2%. These adjustments would help limit market disruption while preserving the intended scope of the safeguard.
“Another cause for concern is the variable out-of-quota duty, which is envisaged in place of a predetermined fixed duty and will effectively result in a ‘blank’ duty at the time of customs clearance of the goods. This cannot be calculated at the time of signing the import contracts, as it is not known in advance to the parties concerned,” the association says in a note sent to Kallanish. The draft regulation does not specify how the out-of-quota duty would be calculated, which authority would determine it, where it would be published or how often it would be updated, leaving importers facing substantial uncertainty.
Another point of concern is the inclusion of Norway and Iceland in the measure despite their full participation in the European Economic Area (EEA) agreement. Assofermet argues that Norway in particular is a long-standing EU partner integrated into the EU’s single market and has historically been excluded from the EU steel import safeguard. “Closing the door on Norway now with regard to ferroalloys would not be the best choice politically,” Assofermet concludes.
After the member state vote was delayed from last Friday to this week, Eurofer urged the European Commission to adopt the proposed safeguard on ferro-alloy imports, describing it as the “last chance” for the industry to recover after years of import pressure.
Natalia Capra France
Eurofer urges EU ferroalloys safeguard adoption
Eurofer has urged the European Commission to adopt its proposed tariff-rate quota (TRQ) safeguard on ferro-alloy imports, describing it as the “last chance” for the industry to recover after years of import pressure. The Commission issued its safeguard proposal last week following an investigation, with member states set to vote on Monday or Tuesday this week.
“There is no doubt that in the current critical situation, without any safeguard action this industry will disappear over the next years, creating a situation of total dependency for European users on supply from foreign countries,” Eurofer said last week.
The European steel industry, as a major consumer of ferro-alloys, has a strategic interest in maintaining upstream production capacity within the EU to ensure supply security and preserve the integrity of the European metals value chain, the association added.
The TRQ system proposed still allows limited yet significant import volumes to enter tariff-free, ensuring a fair balance between suppliers and users, according to Eurofer. “This action is not directed against any specific exporting country, but aims to strengthen EU economic resilience and autonomy,” it added.
The European Commission has proposed a three-year safeguard measure on imports of certain ferro-alloying elements effective from 18 November, following evidence of serious injury to Union producers, it said via a WTO notification seen by Kallanish.
The Commission concluded that the safeguard is in the Union’s strategic and economic interest, supporting the recovery of a sector vital to steelmaking, automotive, and advanced alloys, while maintaining a secure and stable supply for EU industries.
The measures are to apply to ferro-manganese, ferro-silicon, ferro-silico-manganese and ferro-silico-magnesium, under CN codes 7202 11, 7202 19, 7202 21, 7202 29, 7202 30 and 7202 99 30.
The Commission established product- and country-specific TRQs based on 2022-2024 average imports, distributed quarterly and increasing by 0.1% annually until expiry on 17 November 2028.
Major quota-holding origins under the safeguard include Norway – despite being an EEA member – India, South Africa, Malaysia, Kazakhstan, Brazil, China, and Zambia.
For ferro-manganese, Norway received 28,972 tonnes per quarter, India 17,626t, South Africa 8,273t, Malaysia 6,766t, South Korea 4,833t, and other suppliers 5,558t.
For ferro-silicon, Norway was granted 35,136t per quarter, Iceland 13,373t, Kazakhstan 8,090t, Brazil 6,316t, and other origins 24,984t.
For ferro-silico-manganese, Norway obtained 37,068t, India 31,959t, Zambia 7,882t, and other countries 18,956t.
For ferro-silico-magnesium, China was allocated 469t, Brazil 100t, India 7t, Thailand 77t, and other suppliers 19t.
In-quota imports enter duty-free, while out-of-quota volumes face a variable duty based on price thresholds of €1,316/t for ferro-manganese, €2,408/t for ferro-silicon, €1,392/t for ferro-silico-manganese, and €3,647/t for ferro-silico-magnesium.
The investigation covering 2019-mid-2025 revealed that EU ferro-alloy output halved, capacity utilisation fell to 35%, profitability dropped from +7% in 2021 to -20% in the latest period, and employment declined by nearly a quarter. Imports rose 13% in absolute terms and more than doubled relative to EU production, with import prices staying 5-17% below Union producers’ levels since 2021.
The Commission linked these trends to global overcapacity of around 27 million tonnes – about 16 times EU demand – combined with trade diversion following US duties on ferro-silicon from Brazil, Kazakhstan and Malaysia in 2025. These factors redirected large volumes to the EU market, intensifying price pressure and eroding profitability.
The measure excludes Ukraine and developing WTO members with import shares below 3% (collectively under 9%), as well as Algeria.
Elina Virchenko UAE