EUROMETAL has urged the European Commission to engage with member states to ensure that service centers, traders and steel distributors are included in discussions relating to trade measures, board member Julian Verden said July 17.
“EUROMETAL is fully behind the Commission’s endeavours to support the European steel industry, which we strongly believe is vital for Europe,” Verden, who is also managing director of Stemcor Europe, said during a telephone interview with Platts. “However it is not necessary that measures should go to the exclusion of imports.”
“I would suggest that the new measures that the EC is likely to put in place should be similar to the existing measures,” he said. “Some changes and reductions in volumes could be reasonable, but the EC should discuss them with us as we represent companies employing many workers and creating considerable taxes. We are happy to work to help propose optimal solutions so that the EC is not just hearing the steel producer side.”
EUROMETAL represents all operators of the steel intermediation chain.
When addressing Eurofer’s recent rumored requests for a 50% increase in safeguard duties and a reduction in quotas, Verden expressed strong reservations. He emphasized that doubling the existing 25% duty is unreasonable and would worsen the challenges faced by end customers. “We’re seeing real hardship,” he said, pointing out that the current duties are already burdensome for many in the industry. While he acknowledged that some adjustments to quotas might be warranted, he argued that a 50% reduction is unjustified, given that the market has only declined by about 15%.
The discussion also touched on the implications of the Trump administration’s tariffs, particularly regarding raw materials exports from Europe to the US. He hinted that if tariffs remain in place, they could lead to significant challenges for European traders selling to the US, particularly for pig iron and other semi-finished products, and higher costs for US steel companies, which probably lobby to lower the tariffs.
The US steel market has experienced significant volatility this year, which has largely benefited domestic raw steelmakers. The current tariff policy has supported finished steel product prices, although it has not significantly affected US producer costs.
Despite a decline in US Midwest hot-rolled coil prices from their mid-March highs, prices remain up 25% in the year to date, according to Platts pricing data.
According to the American Iron and Steel Institute, the Netherlands, the UK and Sweden are the top three exporters of scrap to the US.
Verden also raised concerns about the current challenging geopolitical climate, which is resulting in some shipping routes becoming more difficult to use, in particular after Houthi rebels attacked and sank two ships earlier in July, killing at least four seafarers after months of calm.
The Red Sea is a critical waterway for commodities shipping but traffic has dropped sharply since Houthi attacks off Yemen’s coast began in November 2023. Verden noted that while the freight market remains soft, insurance costs are increasing, pushing up operational costs for traders.
