Continued rebar and merchant bar imports from third countries are raising concern among European electric steelmakers that the EU is prioritising safeguarding flat products produced from blast furnaces over that of electric arc furnace-based long steel.
Many electric steelmakers believe the goal of both EU laws and subsidies is to protect the coal market and finance blast furnace decarbonisation.
Italian long steelmaker Beltrame tells Kallanish that, along with other EU steelmakers, it has expressed concerns to the European Union in a recent letter sent to Brussels, requesting increased protection. However, their complaint has yet to receive a concrete response.
“Flat products represent the most safeguarded products in Europe,” states country manager for France and Romania, as well as chief business development officer, Carlo Beltrame in an interview with Kallanish.
The EU’s tariff-rate quotas for flat products have been utilised to a lesser extent compared to quotas allocated for longs this year. Under the new quota system set to conclude in June 2026, Europe has implemented reductions in quotas for coils while maintaining the existing levels for long products.
Maintaining the blast furnace route in Europe is crucial, but in contrast to the subsidies allocated to blast furnace steelmakers in Europe, the EAF route is not receiving any financial assistance, Beltrame points out.
Quotas for rebar and merchant bar typically deplete at the start of each quarter, according to Raffaele Ruella, managing director of Beltrame. The nations within the Mediterranean basin serve as primary exporters, especially to southern Europe. Numerous producers in Turkey are allocating capital towards decarbonisation initiatives to maintain their market presence in Europe; however, there is no requirement for them to disclose the origins of their billet, gas, or other raw materials, and no environmental constraints.
Taking advantage of the weak dollar, Turkey, Egypt, other countries in North Africa, as well as Asian countries including Korea, Vietnam, Malaysia, and China, are dumping material in Europe at competitive prices. These are sometimes $200-300/tonne less than in their local market, Ruella adds.
Certain long products from these countries face quality concerns, and Europe lacks the tracking mechanisms for these imports, resulting in an inability to verify their traceability. According to sources, a shipment of rebar was imported into Italy last month, although it was classified as merchant bar due to the exhaustion of rebar quotas.
“Our production of rebar and merchant bar is currently operating at significantly reduced capacity and, at the same time, we continue to buy from producers in [third countries] who do not provide quality guarantees or tracking information,” Beltrame comments.
“I believe that after the dream of globalisation, the industry has to reposition itself to become more local instead of global, pursuing sustainability from a financial and environmental standpoint,” he adds. Enhanced protection would lead to development and the creation of new jobs, along with clear and traceable product quality.
Beltrame points out that Europe identifies China as the primary adversary for European steel, while failing to address the situation in Turkey. The country serves as a significant exporter of long products to Europe and various other destinations, often without the provision of product guarantees, but it is also a significant importer of flat products from Europe.
Natalia Capra France
