EUROMETAL, the trade association representing EU steel distributors, traders and service centers, has called on the European Commission to take decisive steps to tackle the escalating threat posed by imported steel derivatives and regulatory gaps in the EU’s trade defense frameworks.
In a letter sent to the commission late on Oct. 2, EUROMETAL highlighted urgent concerns, including the circumvention of existing Carbon Border Adjustment Mechanism rules by steel-intensive finished goods, the protracted delay in finalizing CBAM benchmark values, and the need for immediate action on import quotas to protect Europe’s steel-based manufacturing ecosystem.
EUROMETAL’s letter emphasized that the uncontrolled surge in steel derivatives, which are manufactured goods heavily reliant on steel, has been rapidly undermining the EU industry. These products often evade current trade defense instruments (TDIs) and CBAM measures, entering the market at low prices with unaccounted embedded carbon emissions.
The association warns that this loophole results in unfair competition, leads to carbon leakage, undermines the EU’s circular economy efforts, and threatens over 3 million industrial jobs.
The letter cites import growth figures from 2010 to 2024 showing a more than 200% increase in steel derivative imports. EUROMETAL highlights the need to extend CBAM and TDIs explicitly to these steel-containing derivatives based on steel content and strategic sector relevance, in order to “close regulatory loopholes” and restore a level playing field for European producers.
CBAM benchmark delay
In addition, EUROMETAL criticized the commission’s postponement of finalizing CBAM benchmark values until early 2026. The association’s president, Alexander Julius, described the delay as causing “uncertainty and unclarity on a cost basis” that has led to hesitation and standstills in contract negotiations across the steel supply chain.
Industry voices warned that unclear CBAM rules jeopardize the EU manufacturing base by complicating import purchasing decisions, particularly amid volatile global carbon pricing disparities.
EUROMETAL’s concerns align with the commission’s proposed legislative measure to halve steel import quotas and raise tariffs on volumes exceeding quotas to up to 50%. This move aims to replicate US and Canadian tariff measures and provide relief to the EU steel industry grappling with global overcapacity, energy and raw material cost challenges, and continued capacity closures and job losses.
EUROMETAL said Europe must take a similarly firm stance as the US’ expanded Section 232 measures and ‘Melt & Pour’ origin tracking rules, which have curtailed steel derivative imports from high-carbon, subsidized producers. The association urged the EC to invoke fast-track safeguard measures for strategic sectors, implement mandatory steel origin declarations at customs, and reinforce customs surveillance to stop misclassification and circumvention near EU borders.
