Europe’s industrial base could be hollowed out within a few years unless policymakers urgently rethink trade and climate policies, steel distributors association EUROMETAL has warned.
At the EUROMETAL Southern Europe meeting in Milan on Feb. 26, attended by S&P Global Energy, President Alexander Julius criticized European steel policy for focusing solely on steelmaking, neglecting the broader ecosystem of distribution and downstream manufacturing that supports millions of jobs.
“Without steel distribution and the steel-using industries, we don’t need steel in Europe,” he said.
The association is calling for a “level playing field” for steel-based products, urging national governments to push for measures comparable to those already applied to raw steel, and arguing that EU institutions are unlikely to act without sustained pressure from EU member states.
Over the past year, EUROMETAL has lobbied Brussels to address what it sees as a growing imbalance. While raw steel imports face safeguards and quotas, downstream steel products often enter the EU market with fewer restrictions.
Julius noted that this discrepancy has contributed to a steady erosion of European steel consumption over the past 15 years, as imported finished and semi-finished goods displace domestic materials.
The issue is intensifying as the US and Canada expand protections to derivative products, with exporters such as China, India and Turkey consequently diverting more steel towards Europe, which Julius described as “completely unprotected.”
He cautioned that planned changes to EU steel safeguards from July — including significant quota cuts and a 50% duty for out-of-quota volumes — could sharply raise EU steel prices without boosting European production.
Meanwhile, unchecked derivative imports would widen the cost gap for EU manufacturers and accelerate industrial relocation, with customers shifting capacity to countries like India and Serbia.
CBAM concerns: uncertainty remains
Julius also highlighted concerns about the EU’s Carbon Border Adjustment Mechanism (CBAM). While supporting decarbonization, he criticized unresolved methodological issues, including emissions benchmarks and certification procedures.
He warned that ambiguous draft guidance and impractical global certification requirements could leave companies unable to model future liabilities, potentially resulting in unexpected costs when payments begin.
Julius reiterated the need for coordinated national action to ensure fair treatment for steel-based products, emphasizing that only sustained member-state pressure will prompt EU institutions to act.
