German steel industry representatives are generally appreciative of the European Commission’s Steel and Metals Action Plan but point to shortcomings regarding CBAM, scrap export restrictions, and energy price reduction measures.
The Commission has reacted fast to the concerns brought forward by the steel industry, German steel association WV Stahl managing director Kerstin Maria Rippel said at the Zukunft Stahl conference organised by Handelsblatt in Essen this week. “It took only 14 days from a discussion with [Commission] President Ursula von der Leyen to the release of the Action Plan. This shows that Brussels has understood how dramatic the state of things is,” Rippel noted.
Rippel pointed to the importance of a solution for exports under CBAM, the expansion of the measure to include downstream products, and measures against circumvention. The Commission has promised solutions to these points by year-end.
Her position was echoed by policymakers. Christian Ehler, Member of the European Parliament, also addressed the extension of CBAM to cover processed products, and to prevent circumvention. “CBAM is still a long way from the instrument we would like to have,” Kallanish heard him say at the conference. “Currently, it is not effective against the challenges of reality.”
Meanwhile, recycling federation BVSE expressed mixed feelings on the Action Plan. It is particularly concerned about export restrictions for scrap. Maintaining open access to foreign markets will not distort trade flows, BVSE maintains. It noted that sales abroad do not reflect merchants’ ex-yard price, which is notably lower for foreign sales than for domestic customers.
Finally, trade union IG Metall finds that the plan remains too vague in many aspects. The union noted that high energy costs are the paramount problem. The plan also falls short of expectations regarding lead markets for green steel and promoting a hydrogen economy, the union pointed out.
