ArcelorMittal calls for extension of CBAM and trade measures to steel derivatives
In the June 2026 edition of its eUpdate client magazine, Paul Brettnacher, CMO Central Accounts at ArcelorMittal Europe – Flat Products, has called for the European Union to rapidly extend both the Carbon Border Adjustment Mechanism (CBAM) and steel trade measures to steel derivatives and downstream products.
According to Brettnacher, the implementation of CBAM on 1 January 2026 and the introduction of the new EU steel Tariff Rate Quota (TRQ) regime from 1 July 2026 represent important first steps towards creating a more level playing field for European steel producers. However, he argues that these measures alone will not be sufficient to safeguard Europe’s industrial competitiveness.
The article highlights the growing volume of imported steel derivative products that currently fall outside the scope of both CBAM and the EU’s steel trade measures. As imports of finished and semi-finished products continue to increase, Brettnacher warns that the intended benefits of the new regulatory framework risk being undermined, with consequences extending well beyond primary steel production.
Particular attention is given to the electrical steels value chain. Components such as laminations, stator cores, rotor cores, electric motors and generators are identified as strategic products for Europe’s energy transition, electric mobility and industrial resilience. The article notes that nearly two-thirds of the non-grain oriented electrical steel (NGOES) required for new electric motors and generators in Europe is now supplied from outside the European Union.
Against a backdrop of expanding global steel overcapacity and increasing subsidised production in third countries, Brettnacher argues that Europe faces growing competitive pressure throughout its manufacturing value chain. He cites concerns that imports of downstream products, which are not currently covered by existing trade or carbon measures, could weaken investment, employment and strategic industrial capabilities within the EU.
To address these challenges, the article proposes three priority actions by 2027:
- Extend CBAM to cover the full NGOES downstream value chain, including first-transformation steel derivatives and downstream products such as electric motors and generators.
- Extend EU steel trade measures to the same categories of derivatives and downstream products, closing what is described as a significant regulatory gap.
- Prioritise “Made in EU” generators and electric motors in European public procurement and funding programmes.
Brettnacher stresses that discussions on the future extension of CBAM are already underway, while consultations on the first extension of the new steel trade measures begin on 1 July 2026, coinciding with the entry into force of the revised TRQ regime. He describes this period as a critical opportunity to strengthen Europe’s industrial policy and ensure that downstream manufacturing receives the same level of protection as primary steel production.
The publication contributes to the ongoing European debate on maintaining a competitive and resilient steel and manufacturing sector while supporting the objectives of the Green Deal, industrial decarbonisation and strategic autonomy. It also reflects growing calls from across the European steel value chain for future policy measures to better address imports of steel derivatives and downstream products.
Assofermet criticizes EC’s “incomprehensible and unjustifiable” delay in publishing country-specific safeguard quotas
The Italian association representing the trade, distribution and processing of steel products Assofermet published a press release today, June 26, in which it urges the European Commission to “proceed with the utmost urgency to adopt the country-specific quotas” of the new safeguard regulation, “putting an end to a situation that risks compromising the regular functioning of supply chains and the competitiveness of European industry.”
A few days before the implementation of the new safeguard regulation that will define the tariff quotas for the import of steel products into the European Union, the EU Commission has not yet defined the distribution of the quotas of origin.
“This is an extremely serious omission, which generates a climate of total uncertainty for market players, as well as a source of inevitable new complexities in the management and execution of contracts at international level and in the customs clearance phase,” Assofermet claimed, defining the delay as “incomprehensible and unjustifiable”.
In this scenario, companies operating in the steel sector, including importers, distributors, as well as end-users, are forced to plan their activities in a context of total uncertainty, unaware of the operating methods to be implemented once the new rules come into force on July 1.
Another issue mentioned by Assofermet concerns the questions that this situation generates regarding customs obligations and the timing of operators’ adaptation to the new regulatory framework.
The association’s position is firm, defining the behavior of the EU Commission as “incompatible with the principles of legal certainty, administrative transparency and protection of the legitimate expectations of companies towards the institutions”.
Author: SteelOrbis Editorial Team
IMF: Shipping and supply chains need time to normalize after Hormuz reopening
Julie Kozack, director of communications at the International Monetary Fund (IMF), commented on the broader global economy and the impact of the conflict in the Middle East during a briefing on recent international developments.
Kozack said the conflict had once again tested the resilience of the global economy and reiterated that the IMF continues to assess developments through three main transmission channels: commodity prices, particularly oil; second-round effects on inflation and inflation expectations; and financial conditions. She added that countries that are net energy importers and have limited fiscal or foreign exchange buffers remain the most vulnerable to the economic consequences of higher energy prices.
Commodity markets recover but normalization will take time
Discussing recent commodity market developments, Kozack said oil prices have fallen from their recent peaks and are now approximately 10 percent above pre-war levels. She added that prices for natural gas, jet fuel, base metals, urea and several fertilizer products have also declined.
However, Kozack cautioned that a full normalization of commodity markets will take time because shipping routes and supply chains need time to recover following the reopening of the Strait of Hormuz under the memorandum of understanding between the US and Iran regarding the reinstatement of peace between the parties. According to Kozack, the outlook also depends on the durability of the current ceasefire.
IMF to update global outlook in July
Kozack said inflation expectations have generally remained well anchored despite recent shocks, although several central banks have tightened monetary policy while others have kept interest rates unchanged. She added that financial conditions have remained supportive, with relatively low sovereign spreads allowing many emerging and developing economies to continue accessing international capital markets.
The IMF will publish a comprehensive reassessment of the global economic outlook, including updated forecasts, in its World Economic Outlook Update on July 8.
Author: SteelOrbis Editorial Team