EUROMETAL: Future of European steel depends on collaboration
As the European steel industry faces historic challenges, the European Federation of Steel, Tubes and Metals Distribution & Trade (EUROMETAL) lately celebrated its 75th Anniversary with a high-profile conference in Luxembourg.
The two-day event gathered over 170 industry leaders to chart a course for the future amid climate policies, trade shifts, and the transition to a low-carbon economy. The Carbon Border Adjustment Mechanism (CBAM), growth of green steel markets, trade defense and regulatory frameworks, and the evolving role of steel distribution in the industrial transition were the key themes in the conference.
Opening the event by underscoring the urgent need for industry alignment and stronger advocacy towards EU institutions as the industry navigates the challenges of CBAM, which is scheduled to take effect in January 2026, climate policy, and regional trade realignment, Alexander Julius, EUROMETAL president, said, “The future of European steel depends not only on innovation and investment, but on collaboration.”
Prominent speakers such as Henrik Adam (Tata Steel Europe), Antonio Marcegaglia (Marcegaglia Steel), Guido Kerkhoff (Klöckner & Co), Edwin Basson (Worldsteel), Axel Eggert (EUROFER), Anthony de Carvalho (OECD) and and Julian Verden (STEMCOR) shared their insights emphasizing the risks and rewards of green steel production; the necessity for clear and fair policies to support European competitiveness; and greater flexibility and specialization in distribution models as clients demand verified emissions data and customized processing solutions. Also, several experts highlighted the role of distributors in driving green demand by integrating Product Carbon Footprints into procurement and customer communications.
EUROMETAL 75th Anniversary: The evolving role of steel distribution
This article is part of a series on steel distribution association EUROMETAL’s 75th Anniversary conference 2-3 July, discussing challenges and opportunities for the sector from its policy background; trade protection; the Carbon Border Adjustment Mechanism; green steel; and the evolving role of European steel distribution.
An oft-neglected aspect of the industrial transition is the growing proximity between steel producers and end-consumers, and in some cases, a perceived isolation of the supply chain’s distributors.
Domenico Martino, Chief Operating Officer of Knauf Interfer, stated in his presentation that direct mill-to-consumer long-term supply contracts for green steel would “redefine distribution’s role,” describing distributors as somewhat hamstrung in their adaptability by the inability of financial institutions to “price-in the opportunities within our reach” when issuing business or credit ratings.
Flexibility is paramount as the steel industry undergoes a period of drastic change and volatility. Attendees at the EUROMETAL Anniversary described a reduced frequency in long-term contract periods; tightening from annual, half-yearly, or quarterly supply agreements to monthly, or purely hand-to-mouth spot market sales.
As described by Ulrich Becker from Becker Consult + Beteiligungs, sales dynamics for European distributors are becoming more volatile – the biggest factor harming distribution profitability. “Lot sizes are decreasing, but frequencies are increasing,” he said.
Becker advised that distributors should attempt to evolve by establishing unique positions in the supply-chain: “business models should be sharpened going forward.” Becker encouraged distributors to ask themselves “what is the value of the company in the wider market?”
A distributor’s size could then be either an advantage, or a disadvantage depending on the specifics of their value offerings across their product and processing lines. “Specialisation will become increasingly important,” Becker concluded.
Indeed, a major theme as the conference neared its conclusion was how distribution could best cope with the evolutions in the steel sector. Ex-President of EUROMETAL, Fernando Espada, lamented growing difficulties in getting customers to pay for distribution’s value-added services, especially given the abundance of market intelligence available to end-consumers and the encroachment of steelmakers into direct-to-consumer sales.
Becker, as well as other conference attendees, instead saw this transparency as an opportunity, giving an example from his consultations with steel end-users. Becker described one project with a large consumer that wanted to better understand how prices asked by distribution mapped to steelmaker and distributor margins – this was not framed as a threat to distributor profitability, but as an opportunity, with the consumer “more than happy” to pay for the distributor’s value-adds when communicated and explained transparently.
As such, Becker, supported by others such as DM Stahl’s Fix, recommended distribution move away from “the sourcing of steel” as its primary business model, focussing more on the specialised processing of material and embracing indexation to evidence the necessity of premiums for their value-added services.
Such an approach would seem to map well to wider economic and geopolitical trends, with demand set to grow in the sustainability, infrastructural, and defense sectors – compounded by increasing protectionism and regionality in worldwide markets and supply chains. While economists at the event – such as World Steel’s Director General, Edwin Besson – emphasised that the steel markets “are, and will remain, very open,” they did expect growing protectionism and regionality in the short-term through mechanisms like melt-and-pour clauses:
“Steel is becoming increasingly attractive around the world,” he said, “it’s moved on from being the child no one wants to talk about.”
As steel’s presence in the spotlight increases, distributors will continue to face a number of challenges, but as identified at EUROMETAL’s 75th anniversary, flexibility and agility could also afford them profitable opportunities.
Benjamin Steven Journalist, Steel
EUROMETAL 75th Anniversary: CBAM “nightmare” to soon become reality
This article is part of a series on steel distribution association EUROMETAL’s 75th Anniversary conference 2-3 July, discussing challenges and opportunities for the sector from its policy background; trade protection; the Carbon Border Adjustment Mechanism; green steel; and the evolving role of European steel distribution.
Doubtless the largest change on the horizon of the European steel industry, and for its distribution sector specifically, is the upcoming definitive phase of the Carbon Border Adjustment Mechanism (CBAM), mandating the payment of carbon duties on the embedded emissions content of imported material from January.
A majority of frustrations expressed at EUROMETAL’s 75th Anniversary concerned these incoming, and uncertain, liabilities under CBAM once it enters its definitive phase. To no one’s surprise, distributors were overwhelmingly negative, describing the instrument as – alongside more colourful language – a “nightmare by nature,” “insane,” “a fiasco” and, most illustratively: “a molotov cocktail for the entire supply chain.”
While many acknowledged the necessity of CBAM in ensuring European industry does not bear the weight of global decarbonisation alone – and welcomed last-minute, patchwork amendments such as the simplification package, plans to extend CBAM’s remit to downstream products, and possible rebates for European exporters – certain legislative or reference gaps were said to be hindering the industry’s preparations for January.
For producers, this concerns gaps in the instrument potentially incentivising carbon leakage, with Eurofer Director General Axel Eggert detailing that over 70% of the almost 30 mt – or EUR50-65bn – of European steel and steel-containing products are exported to countries without comparable climate policies.
“CBAM is at a critical point, it has the potential to save, or destroy, industry in Europe,” said Dr Henrik Adam, President of Eurofer. “But it is very easy to see how this nice cocktail could become a molotov cocktail by overconsidering technical arguments, not action.”
For distributors, a lack of clarity as to the financial burdens of CBAM, as well as arduous administrative obligations, risk overwhelming their activity and profitability.
“Decarbonisation has been taken as a mantra without proper consideration for pragmatism and competitiveness,”; said Antonio Marcegaglia, CEO of Marcegaglia. “It could now be too late.”
Foreign exporters such as Turkey largely see CBAM as an opportunity if they can predict and quickly align to EU regulatory requirements: with a high-weighting of electric-arc furnace production, and abundant solar supply; exporters in adjacent regions could see strong demand from European importers stocking green steel. However, even within Europe, incumbent producers with existing low-carbon productions have struggled to turn this advantage into green premiums, as seen in the long steel market.
Most notably, the European Commission is yet to release the benchmark Emission Trading System (ETS) values for 2026-2030, a core part of the formula dictating an importer’s exposure to European carbon costs. This leaves importing distributors in the dark as to the specific costs of importing under CBAM, with material from some origins already likely to fall liable to CBAM costs.
Speaking at the event, Managing Director of trading house STEMCOR, Julian Verden, estimated from his industry sources that the benchmark value for the blast furnace route – by which the majority of the world’s steel is produced – would be around 1.4t CO2e per tonne of steel. In attempting to pass relevant carbon costs downstream, however, Verden found that his customers were “completely unwilling” to commit to variable costs, instead insisting on a fixed price structure for purchasing that has already led STEMCOR to embed an estimated CBAM premium into recent trading – despite lacking an authoritative reference.
“The get-off-the-pot moment is quickly approaching,” said Verden, describing a rush in demand to import and customs clear international steel before CBAM duties become due in January. “This year is going to be a bit of a nightmare for us all, but I do believe we’ll make it through.”
STEMCOR estimates that, assuming a benchmark for blast-furnace route production of 1.4t CO2e/t and an EU Emissions Allowance (EUA) price of EUR76, imported steel of 2.1t of embedded CO2e would see additional costs of around EUR56/t from January – though in reality the spotlight on and greater demand for EUAs should see this increase, with McCloskey’s affiliated carbon team CAMIRO forecasting prices above EUR80 from January.
Verden quashed hopes – including his own – that CBAM could be further delayed to better map to the realities of the industry, stating that from his conversations with senior CBAM authorities the upcoming transition into the definitive stage was “basically inevitable.”
Verden’s own preference would be for a hybrid of the definitive and transitional periods, seeing the Commission publish benchmark values early alongside a flat CBAM duty for 2026 and moving to payment on verified emissions in 2027, potentially launching fully in partnership with the UK’s own version of CBAM.
Benjamin Steven Journalist, Steel
EUROMETAL 75th Anniversary: Political will requires political action
This article is part of a series on steel distribution association EUROMETAL’s 75th Anniversary conference 2-3 July, discussing challenges and opportunities for the sector from its policy background; trade protection; the Carbon Border Adjustment Mechanism; green steel; and the evolving role of European steel distribution.
Distributors attending European steel distribution association EUROMETAL’s 75th anniversary conference last week identified both challenges and opportunities from the sector’s changing regulatory landscape, with many believing distribution would have to adapt its role in the steel supply chain.
Following the United States’ lead, nations worldwide are continuing to pass protectionist measures for their domestic steel industries, leading many – especially more import- dependent distributors – to question the resilience of their position in regional and global supply chains in a new era of steel market isolationism and regionality.
Distributors have certainly suffered under prevalent uncertainties so far this year. Already in what has commonly been termed a ‘crisis,’ the European steel industry has seen changes to its safeguard and anti-dumping framework; tariff offensives from the US on both steel exports and their dependent markets; an uncompetitive demand and consumption landscape; and of course the upcoming definitive period of the Carbon Border Adjustment Mechanism (CBAM) and its role in securing the decarbonisation strategy of domestic industries.
It is no surprise then that many in the distribution segment lament the concurrence of these different factors, pulled by pressures from the top and bottom of the steel supply chain. That said, while conference attendees painted a negative picture of how the European steel industry reached this point of crisis, many speakers at EUROMETAL’s anniversary were optimistic about a recent change in tone from European political authorities. Representatives from steel producers in particular identified new policymaker recognition of the issues plaguing the steel sector, with a desire to support not only steel producers, but also the distributors facilitating the processing and movement of steel to its consuming industries.
Market participants at the event shared insights into ongoing consultations on lead market generation for green steel, namely low-carbon and “Made in Europe”; labels under the Clean Industrial Deal and upcoming Industrial Accelerator Act; simplification and downstream extension proposals surrounding CBAM, and import monitoring and the proposed long-term replacement to the European steel safeguard system.
Attendees at the conference have been consulting with the European Commission (EC) to ensure that new initiatives respect the real dynamics of the steel industry and trade, but while this new protective “political will” was widely cited by relevant parties, a common theme surrounded doubts on policymakers’ powers to execute pragmatic change, stymied by an abundance of overly technical, defeatist, or naïve arguments from the European civil service.
“I see keen policymakers that are repeatedly subjected to negative arguments from their services,” said Dr Henrik Adam, President of Eurofer. “We have the political will – the question now is: do we have the power to exert real change?”
“After three days with Commission staff I am completely brain-busted, many of them cannot understand the realities of our industry,” agreed Marcus Fix of service center DM Stahl.
“Sometimes I get the impression the European Commission wants to ride a white unicorn on a rainbow,” he continued. “They lack any urgency; we need to be fast but instead we’re stuck in regulatory hell.”
Adam admitted a degree of envy for American political dynamism, though was careful to clarify that he was in support of its style rather than content:
“While I am not a fan of the new way the Americans are conducting their business, the effectiveness of its policies on American reindustrialisation is evident”, said Adam. “The sentiment is important, the point is that we often hear a “no”; from Brussels and its services.
“The US has a “can-do” attitude, but in Europe we are often missing this “will to win”.”
Benjamin Steven Journalist, Steel
KASTO evaluated the future of the industry at EUROMETAL’s 75th Anniversary Conference
KASTO, a Germany based manufacturer of sawing and automated warehouse systems, was the main sponsor of EUROMETAL’s 75th Anniversary conference in Luxembourg and shared its innovative solutions and global vision with the participants. KASTO Owner and CEO, Armin Stolzer, gave a comprehensive presentation on how the steel distribution industry is transforming around digitalisation, automation and sustainability.
Armin Stolzer emphasized that KASTO is a leading company in the metal industry with six subsidiaries across Europe, North America, and Asia. He stated that while a large portion of their customer base is made up of the steel distribution sector, they also serve various other industries such as the window and door industry, as well as machinery, energy, and aerospace.
Stolzer explained that on the storage side, KASTO offers automated solutions with capacities of up to 10,000 pallets, ranging from standard systems to fully integrated and customized solutions. He noted that these systems operate in full integration, allowing for the storage of automatically cut parts thanks to material handling solutions like robotic sorting devices.
He also introduced a new solution launched during Kasto’s 80th anniversary last year, which enables the retrieval of all bars from storage and order preparation without human intervention. He explained that the system, called Cluster Flow, manages the entire warehouse process up to truck loading.
On the cutting side, Stolzer stated that Kasto provides compact machines for small and medium-sized companies, as well as a wide range of machines for mass production or special applications. He emphasized that all machines can be integrated with other systems, and that warehouse flows can be optimized through dedicated mobile applications.
In his speech, Stolzer also addressed political and economic challenges, highlighting rising costs, labor shortages, competitive pressures, and logistical issues. He proposed a five-step model for improving efficiency in warehouse management and highlighted the importance of LED technology in both hardware and software.
Recommending vertical core solutions in storage systems, KASTO maximizes space utilization while reducing material movements to save labor and costs. Stolzer pointed out that by combining technology with efficiency, companies can reduce occupational health and safety risks, increase customer satisfaction, and optimize their operations.
He also underlined that the integration of software solutions with warehouse management systems enables production machines, cutting optimization, and intelligent systems to work together seamlessly. Stolzer added that KASTO continues to pursue the goal of achieving high efficiency with fewer personnel by leveraging technology, especially during a period when the baby boomer generation is exiting the workforce.
As the main sponsor of the conference, KASTO continues to shape the future of the steel distribution industry with its innovative solutions focused on sustainability and digital transformation.
Julian Verden: Volatility and unpredictability have become the only constants in today’s commodity markets
Speaking at EUROMETAL’s 75th anniversary conference, Julian Verden, Managing Director Europe at Stemcor, shared his insights on the evolving dynamics of global steel trade, highlighting both the challenges and opportunities facing the sector.
“We’ve entered an era in global steel trade defined by price volatility, protectionism, and geopolitical tensions,” Verden stated. “The HRC price in the U.S. currently stands at $958/ton, up about $190 since the beginning of the year — a 22% increase year-over-year. While this points to a short-term recovery, we expect prices to stabilize at elevated levels over the longer term.”
Turning to Europe, Verden noted, “The HRC price in Europe is currently €576/ton, reflecting a 9% decline compared to the same period last year. CBAM implementation, demand recovery, and restocking are expected to push prices up in the long run, but weak short-term demand continues to weigh on the market.”
On China, Verden noted: “The HRC price in China is at $445/ton — down $15 from the start of the year and 14% lower year-over-year. China’s steel exports are rising; in the first five months, they exported 48.47 million tons of steel products. While this offers short-term relief for Chinese mills, it also places downward pressure on global prices. Without a recovery in domestic demand, China’s steel sector may face structural challenges.”
Verden also addressed protectionist measures: “U.S. President Trump’s decision to raise steel and aluminum tariffs to 50% is impacting markets. The UK is currently exempt, but ongoing negotiations with Mexico and Canada add uncertainty. Europe has requested exemptions from the 50% out-of-quota tariff. Meanwhile, India and Southeast Asian countries are also introducing anti-dumping measures against Chinese steel. Protectionism is forcing a new balance in global steel trade.”
Regarding geopolitical developments, Verden stated: “The Russia-Ukraine war and Iran-Israel tensions are driving up energy and freight costs. Brent crude prices have risen by 15% recently, and the Baltic Dry Index is up 17.6%. In this environment, uncertainty has become a permanent feature of the steel sector.”
On green transition efforts, Verden remarked: “CBAM is expected to add around €56 per ton in additional cost for imported steel. Europe’s low demand and shrinking margins have slowed down green steel projects. Some DRI-EAF projects have been halted. While there is green steel supply, buyer-side demand remains sluggish. However, with increased government spending and full CBAM implementation, we anticipate a rebound in both pricing and demand for green steel.”
Verden concluded his remarks by stating: “To adapt to the new era in the steel industry, we must be flexible, creative, and open to collaboration. Only then can we ensure sustainability and price stability.”
Klöckner & Co: The green transition needs steel
Germany-based steel and metal supplier Klöckner & Co SE highlighted the critical role of the steel industry in the green transition. Speaking at EUROMETAL’s 75th Anniversary conference, the company’s CEO, Guido Kerkhoff, emphasized that environmentally friendly steel production plays a key role in combating climate change.
Kerkhoff pointed out that compared to alternative materials such as carbon fiber, steel is less harmful to the environment and contributes to the circular economy thanks to its recyclability. Kerkhoff noted that “green steel,” produced with modern technologies, significantly supports sustainability through its low carbon emissions during production processes.
According to company data, the use of green steel can substantially reduce carbon emissions in sectors such as automotive, household appliances, construction, and energy projects — all while only causing a marginal increase in final product prices. “Green steel can offer over 20% CO₂ savings with cost increases of just up to 1%,” Kerkhoff stated.
Guido Kerkhoff also warned that demand for green steel in Europe is rapidly increasing and that production capacity may fall short of meeting demand by 2030. He highlighted potential mismatches between green steel types and customer expectations.
Underlining that customers aiming to meet climate targets need products with genuinely low carbon footprints, Klöckner & Co is expanding its portfolio of sustainable products and services. The company has developed a system under the Nexigen® brand that ensures carbon emissions are measured and reported transparently.
Thanks to Nexigen®, the carbon footprint of each product is calculated and shared in detail with customers. The system covers emissions throughout the entire supply chain — from raw material procurement to final delivery — and is certified according to international standards. This allows customers to view carbon data for past orders and explore lower-emission alternatives.
Kerkhoff noted that transparent carbon accounting across the supply chain provides a strategic advantage for both companies and customers. Pointing to the rising demand for low-carbon steel products over the next 5 to 10 years, the CEO stated, “Only products with verified and transparent carbon data will be able to meet this demand.”
Klöckner & Co continues to focus on low-carbon steel supply and sustainable solutions with the ambition of being a pioneer in the green transition.
EUROMETAL president says CBAM clarity vital as Europe steel trade enters transition phase
The Carbon Border Adjustment Mechanism (CBAM) will reshape European steel trade in the coming year, but the market still lacks key details needed for long-term planning, Alexander Julius, president of EUROMETAL, told S&P Global Commodity Insights in an interview.
Alexander said that the future of European trade policy lies in stronger federation-wide coordination. “Our intention is to further strengthen the joint voice of federations. We need more and more of one voice toward Brussels,” Julius said.
Market seeking DDP clarity
Julius emphasized that for most of Eurometal’s members, steel trade into Europe already occurs on a DDP (delivered duty paid) basis — a trend that CBAM is expected to accelerate.
“Our business has always been DDP — not a lot of CIF/CFR at all,” he said. “The industry wants DDP solutions. But to deliver those, we need full clarity on CBAM.”
Julius noted growing concerns from exporters within the EU, especially regarding necessary potential tax claims when exporting to non-ETS countries and the complexity of tracking embedded emissions downstream.
“If CBAM is digested as a tax, but you’re exporting to a country without an ETS, will there be a way to claim it back? That’s one of the unresolved questions,” he said. “It’s becoming another cost factor that needs to be built into calculations but then the question of competitiveness remains.
No premium, but ‘grey steel’ pricing may shift
Asked whether CBAM could lead to more EAF-based imports into Europe, Julius said there would not be a “green steel premium” but rather a premium for more carbon-intensive products.
“For blast furnace products, CBAM costs will be higher. You may see a kind of ‘grey steel premium’ emerge instead. The market will adapt,” he said.
Julius pointed to companies using both BF and EAF production routes, and suggested that, as mass-balancing and emissions accounting practices evolve in view of the EC plans to avoid resource shuffling, trade dynamics will be affected.
“In the end, CBAM won’t stop trade — but it will change its shape,” he said.
Industry still waiting for benchmarks
With no final EU CBAM benchmark and default values published yet, as well as the speculative EU ETS development until the end of 2026, carbon cost calculations remain a challenge for steel buyers and distributors. Julius said Eurometal members are relying on mill-reported emissions, ETS prices, and internal know-how to anticipate likely CBAM values.
“We’ve dealt with this in detail at the company level. We expect the benchmark to be within a certain range — close to ETS levels — but more certainty is essential,” he said.
He added that some buyers want CBAM costs broken out as a line item, while others prefer a bundled, inclusive price. “It depends on the customer — but everyone wants the calculation formula to be consistent and transparent,” Julius said.
As the EU’s CBAM looms on the horizon of 2026, many have suggested that there could be a deluge of imports, as buyers attempt to avoid the mandatory carbon reporting requirements from the legislation.
Industry consolidation and EUROMETAL’s evolving role
Looking ahead, Julius said the European steel landscape was becoming increasingly regionalized, with more consolidation in downstream sectors and a shift toward local sourcing.
Reflecting on Eurometal’s 75th anniversary event, Julius said the feedback had been overwhelmingly positive, despite some suggestions to include more voices from the distribution segment.
“A few people criticized that we didn’t have enough distribution businesses represented. But our speakers — from Henrik Adam to Marcegaglia — were very well received,” he said. “The dinner and cocktail night before was very important — it helped bringing people together. Attendance was strong, and the feedback we’ve had so far has been great.
EUROMETAL’s presence is getting stronger, more companies and associations are becoming part of our federation, and we gain an increasing market picture enabling is to better represent the interest of our industry.
EUROMETAL 75th Anniversary: EU steel producers seek early safeguard replacement
European steel producers are campaigning for an early, and intensified replacement of the European safeguard system, Axel Eggert, Director General of industry group Eurofer confirmed at a conference held by steel distribution association EUROMETAL.
Eurofer is pressuring the European Commission to intensify its steel trade protections, endeavouring to maintain a strong presence in Brussels as European authorities consult on avenues for replacement measures to the steel safeguard system.
Speaking at EUROMETAL’s 75th Anniversary conference in Luxembourg, Eggert outlined Eurofer’s desired safeguard policy: intensified tariff-rate quota (TRQ) protections for European producers, with unanimous jurisdiction for the measures across exporting origins. The replacement measures should therefore apply to all steel categories – including an extension to downstream or derivative products.
Eggert stated that despite the most recent review of the safeguards, exporters from Asia were able to absorb the current out-of-quota duty rate of 25% and remain competitive against European domestic productions. This is compounded by the US’s latest tariff offensive, doubling their steel duties to 50%, which threatens to simultaneously deflect imports to Europe from the US market and restrict Europe’s own reciprocal export potential.
While the EU continues to negotiate with the US to reduce said tariffs to zero by the 9 July deadline, Eggert commented that the pair remain “very far away from a deal,” and that he expects that a tariff rate of 25% will be maintained on Europe’s exports given the US’ latest proposal.
To mitigate these pressures, Eurofer is requesting a doubling of the tariff rate to 50% – aiming to reduce overall import penetration into the European market by the same 50%. Eggert confided that while policymakers are increasingly receptive to the idea of intensified restrictions, European civil services are the barrier, overwhelming senior legislators with highly technical arguments that delay progress – a sentiment echoed by Eurofer President Dr Henrik Adam in his own presentation.
The EU’s safeguard measures – originally imposed to address import deflections from US President Trump’s initial section 232 steel tariffs – are due to expire in July 2026, with termination mandated after eight years under World Trade Organization (WTO) rules. Evidently, the safeguards have not achieved an improved trade balance as they approach the deadline, with import market share approaching 30%, and European producers consistently pressured toward – or under – red lines.
Replacing the measures in a manner consistent with WTO principles could require some legal creativity. Eggert hinted that mechanisms under the General Agreement on Tariffs and Trade (GATT) could be stretched to facilitate the new protections. This could include liberal interpretations of the exceptions mechanisms allowing WTO members to protect their “essential security interests” – both the United Kingdom and United States have been framing their latest steel protection initiatives under the umbrella of national security. The EU’s strict – and increasingly isolated – adherence to the WTO framework was criticised by multiple speakers at the EUROMETAL event.
At present, domestic prices for hot-rolled coil (HRC) in particular are heavily pressured by imports, with prices as low as EUR450-470/t CFR reported from Indonesia – around EUR100/t below the latest domestic ex-works offers and trades.
When questioned on the possibility for emergency reviews to the safeguard TRQs before their expiry to address this aggression from new exporters, Eggert stated that no further reviews were scheduled, and that Eurofer was instead pushing for replacement measures to take effect more urgently, from 1 January 2026.
Julian Verden, Managing Director of trading house STEMCOR, suggested that while he generally supported the rational application of trade protection measures, Eurofer’s safeguard policies – past and present – were designed to overly frustrate importers with disguised logistical barriers, such as the timing mechanism for customs clearances. Eggert replied that the safeguard mechanisms were specifically structured to protect domestic capacities, linking protections with the need to support the industrial transition, and address the crisis facing the European steel sector:
“If you want to have decarbonisation, then of course, the safeguard has to be seen as a tool for that purpose.”
According to Eggert, the European Commission’s proposal for the replacement measures will be presented in September.
Tata Steel Europe CEO: deindustrialisation in Europe has already begun
The current state of the European steel industry, as well as the entire manufacturing value chain it supports, is marked by mounting challenges and growing uncertainty. Speaking at the EUROMETAL 75th Anniversary Conference, Henrik Adam, CEO of Tata Steel Europe, emphasised that deindustrialisation is not a distant risk – it is already underway. And the question is whether the European community wants to let it continue and make Europe dependent.
According to Adam, Europe’s industrial sector is the only one globally that is experiencing a consistent downward trend. While other regions are expanding their civil and processing industries, Europe is seeing plant closures and job cuts. “Job losses have already happened, more are being announced, and capacity is shutting down,” he warned.
European steelmakers operate under one of the strictest emissions frameworks in the world. While the global average carbon intensity is around two tonnes of CO2 per tonne of steel, many European mills perform significantly better. However, this comes at a cost, Metal Expert understands.
Europe’s ambition to decarbonise is not matched by global standards, putting EU producers at a disadvantage against imports from countries with lower environmental requirements and production costs.
“We already know of projects being set up to bypass EU rules,” Adam noted.
New low-carbon technologies are under development, but the scale-up from lab to industrial level will take time and require massive investment. Without a robust framework to manage exports and embedded emissions in downstream products, European mills will lose competitiveness after CBAM is fully implemented in 2026.
Energy costs remain one of the largest burdens for European producers. According to Adam, industrial electricity in Europe is, on average, 150% more expensive than in other regions, and industrial gas prices are more than double.
European producers transitioning to EAF technology are particularly exposed. He argued that Europe must establish a long-term, low-cost energy framework – or shift production of energy-intensive goods to regions within Europe where renewable power is cheaper. He cited southern countries like Spain, Portugal, and Greece as potential energy hubs.
Scrap metal is a vital input for low-emission steelmaking, but its availability in Europe is increasingly under threat. Currently, the EU exports around 19 million tonnes of scrap annually, a significant portion of which could be used domestically to reduce emissions, Metal Expert learnt.
“Scrap business is still lacking industrialisation, and also if you all [mills] convert [to EAF] in Europe to use more scrap, scrap will be easily a scarce resource,” he added.
Without safeguards, Europe could face a paradoxical situation – importing high-emission steel while exporting a key decarbonisation input.
Despite the challenges, Adam stressed that Europe still has the tools to secure its industrial future – but only if decisive action is taken. “It’s in our hands to ensure that our children and grandchildren have jobs in Europe that are not just about selling ideas or counting money,” he said.
Vlad Shementov
