The European Commission’s latest trade proposal, the melted-and-poured requirement, and CBAM are very important tools to support Europe’s steel industry, says Leopoldo Rubinacci, European Commission deputy director general for trade and economic security.
The steel sector is in a critical state at a time of uncertainty and geopolitical tensions, and it is important to continue protecting it to ensure Europe has a competitive industry, he noted at the Steel Tech 2025 conference in Bilbao on Tuesday, attended by Kallanish.
According to Rubinacci, the steel industry faces major difficulties, many of which are unrelated to imports, as it is not self-sufficient. One of these is sluggish demand. “In times of relatively low growth, the situation is complicated. There is a problem of very high energy costs and the challenge of decarbonisation, which European companies are tackling head-on and will require large investment,” he noted.
Most conference attendees considered Chinese overproduction to be a problem, with global capacity far exceeding demand. This imbalance is driving a restructuring of production that involves plant closures, layoffs and bankruptcies of entire companies. The problem has reached an unsustainable level in Europe, as it is not only an economic issue but also a social problem, delegates warned.
Since 2018, the EU has adopted safeguard measures which have helped to regulate the market by setting limits on free trade. These measures will expire in June next year. “We have done some calculations and decided to take action. We believe it is important that the European Commission proposal can replace the safeguard without causing a temporary disruption. As for the timetable, the final decision now rests with the Council of Ministers and the European Parliament. The initial reactions we have received are quite positive. We therefore hope that the legislative process will not be too complicated,” Rubinacci explained.
The EU will have to negotiate with certain countries on possible compensation to mitigate the effects of the new measures and redistribute import quotas among 30 product categories.
“The first task is to identify our main suppliers. As in previous situations, we want to ensure that these main suppliers are aware of the specific circumstances. Why is this necessary? Because if we impose a global limit, the import quota would be applied on a first-come, first-served basis, which could favour some countries over others,” the deputy director general said.
“The problem is evident, as steel buyers already have their own organised purchasing systems and value chains. This could create conflicts between legitimate state policies and individual users’ preferences when choosing where to buy,” he added.
Among the factors that must be taken into account are special trade agreements, as they constitute an important dimension that the sector cannot overlook. “We have contacted our trade partners with a clear message. We find ourselves in a situation where we have no choice but to proceed with what is necessary, but remain committed to working with them to find appropriate solutions,” Rubinacci asserted.
Industry representatives at the meeting agreed that, regardless of how the duty-free quota is allocated on a country-specific basis, all market players should expect their import possibilities to be quite limited compared to previous years.
“In response to the steel circumvention resulting from the US tariffs, the EU’s melted-and-poured requirement will give more transparency in the market. Decarbonisation remains a priority while the creation of CBAM will be essential for the sustainable future of the sector,” Rubinacci concluded.
Todor Kirkov Bulgaria
