EUROMETAL participates in Cattwyk panel discussion on circularity in the steel sector
EUROMETAL President Alexander Julius participated as a panelist in the event “In the Loop with Cattwyk | Circularity in the Steel Sector”, held in Brussels on 5 March 2026. The event launched Cattwyk’s new series of discussions dedicated to the circular economy and its implications for European industry.
The panel brought together representatives from across the steel and manufacturing value chain, including Harriet Dalger (Damen), Adolfo Aiello (EUROFER), Hans Henning Hein (Jungheinrich), Dr. Carmen Ostwald (LESS) and Ulrich Adam (Orgalim).
Discussions focused on the strategic importance of steel and metals for Europe’s industrial future, as well as the challenges the sector faces in terms of competitiveness, decarbonisation investments, energy costs and international competition. Particular attention was given to the implications of the EU Steel and Metals Action Plan (SMAP), the Carbon Border Adjustment Mechanism (CBAM) and upcoming initiatives such as the Circular Economy Act.
During the debate, Alexander Julius emphasised the importance of maintaining a level playing field for the entire European steel value chain, stressing that EU legislation should not only focus on primary production but also take into account the role of steel distribution, service centres and downstream manufacturing industries.
He also highlighted the need for greater transparency and objectivity in assessing decarbonisation progress, including closer monitoring of imports of semi-finished products such as slabs, which continue to increase.
Another key point raised during the discussion was the complex design and hasty implementation of CBAM, which, continues to create uncertainty and risks undermining the competitiveness of European industry if not properly calibrated.
The event formed part of a broader dialogue on how circularity policies and climate legislation can support a competitive and sustainable European steel ecosystem, while ensuring that the entire industrial value chain remains viable.
EUROMETAL will continue to actively contribute to these discussions, advocating for balanced policies that support decarbonisation while safeguarding the competitiveness of Europe’s steel supply chain.
EUROMETAL Southern Europe Meeting 2026: Vezzosi and Julius warn of risks of deindustrialization amid CBAM, safeguards and rising costs
The first panel at the “EUROMETAL Southern Europe Meeting 2026” hosted by EUROMETAL and Assofermet in Milan, February 26, opened with a clear message: the risk of the deindustrialization of the European Union is no longer an hypothesis, but a dynamic that the industry – along the entire steel supply chain – already perceives as real. The core of the discussion was the combined impact of trade measures, regulatory costs and growing global competitive pressure.
Cinzia Vezzosi, president of Assofermet, framed the issue as “systemic” and not limited to the steel sector alone. Vezzosi recalled how the EU has adopted measures with shared objectives (tackling environmental dumping, protecting domestic production, the ecological transition), but called for a look at their effectiveness, stating, “Are these instruments really strengthening the EU’s ability to compete or, on the contrary, do they risk undermining it deeply?”
According to the president of Assofermet, CBAM – created to rebalance competition – risks turning into a heavy burden for distribution and processing, i.e., for those segments that are already operating in global markets and are serving downstream manufacturing. The competitive gap, she said, could become structural. When this happens, she said, “deindustrialization begins”, with direct effects on employment, industrial capacity and the resistance of the value chain.
Vezzosi called for a change of pace in the European approach, asking for consistency between transition and competitiveness, stating, “This is not a corporative appeal, rather a systemic appeal. We ask environmental policies to be accompanied by industrial policies and that the protection of production does not end up penalizing processing and distribution. Above all, we ask for competitiveness to become a central issue of European choices and decisions.”
Next, Alexander Julius, president of EUROMETAL, shifted the focus to the resilience of European manufacturing, recalling that the supply chain does not end with primary steel. Distribution and user sectors make all the difference, he said, because without those who transform and incorporate steel into finished products, industrial demand and, consequently, the very sustainability of the segment in Europe are lacking.
In his speech, Julius insisted on a key point: the current combination of trade measures and environmental regulations, with rising costs and still unclear details, is generating a level of uncertainty that the industry considers dangerous. In his opinion, this not only affects the accounts of companies, but also the ability to plan and invest. “The industry needs certainties: at least we need to be able to make calculations. And, unfortunately, this is lacking today,” he said, warning that the absence of a predictable framework risks translating into rising costs that are difficult to manage when the measures are fully operational.
Julius then launched a further alarm signal on the degree of market readiness, stating, “I fear that many companies are not ready and that they are only partially considering these costs in their calculations. And this could turn into a surprise towards the end of 2027, when it will be time to pay.” In the context of the debate on CBAM, this came as a reminder of the need for tools and application rules to be defined quickly, to avoid distorting effects along the value chain.
Finally, Julius underlined the political dimension of the issue. According to the president of EUROMETAL, “European institutions will do nothing without pressure from national governments. This is why we must remain united and do something together,” adding that EUROMETAL is preparing a Europe-wide initiative, open to the involvement of interested associations in addition to Assofermet, with the aim of building a common position and a coordinated action “to be started immediately”, because – he concluded – “We have to do something now”.
European steel sector reels from carbon border tax hit
The European steel import sector is grappling with severe implementation challenges under the Carbon Border Adjustment Mechanism, with importers facing “excessive cost surprises” from regulations published at the last minute, EUROMETAL President Alexander Julius said in an interview.
Julius warned that the steel industry is confronting an unprecedented regulatory burden that threatens to accelerate European deindustrialization.
The European Commission published more than 1,600 pages of new calculation factors in December 2025, leaving most importers scrambling to understand compliance requirements that took effect Jan. 1, 2026.
“The complete steel-using industry is suffering from the final CBAM cost calculation components published by the European Commission last minute in December 2025,” Julius told Platts, part of S&P Global Energy. “Most importers and their steel-using partners will be faced by excessive costs surprises never assumed nor included in the original calculation done in the course contract closing in 2025.”
The timing has created a cascade of problems across the steel supply chain, with companies unable to properly assess compliance costs before contracts were finalized in 2025. Julius said most industry participants responsible for CBAM compliance had not begun reviewing the extensive new documentation before offices reopened Jan. 5.
Agricultural precedent
The steel sector’s struggles come as the European Commission has already signaled its willingness to provide relief to the agricultural sector just two weeks after CBAM’s entry into force. Under pressure from EU agriculture ministers, EU Commissioner Maroš Šefčovič indicated he may suspend CBAM requirements and reduce tariffs for fertilizers.
Julius expects similar political pressure to emerge from the steel sector, arguing that the justification for exemptions lies in the “unproportional costs and price increases resulting in steel based finished products being not competitive compared to products made outside of the EU and imported into the EU.”
The competitive disadvantage extends beyond imports, with EU exports also expected to decline as domestic production costs rise. “The logical consequence is an exponentially increasing deindustrialization in Europe,” Julius said. “This is not fiction, we know various manufacturing companies already announced those consequences.”
The new regulations could fundamentally alter sourcing patterns, potentially making certain origins uncompetitive and driving prices even higher when combined with broader EU steel import restrictions.
The implementation challenges are compounded by what industry participants describe as fundamental flaws in the CBAM framework.
Steel trader Gerber Steel has formally alerted the European Commission to “serious errors and inconsistencies” in default values, particularly for Taiwan’s stainless steel category, arguing the values appear copied from other origins rather than being based on country-specific data.
Julius characterized the default value system as “a mystery,” suggesting it was developed to meet the Dec. 31, 2025, deadline rather than being based on factual analysis. The rushed implementation has created additional complications around certification requirements, with certifiers not expected to receive accreditation from national bodies until July 2026.
“The biggest challenge lies with certifiers not being accredited by the national accreditation bodies before July 2026,” Julius said. “The next challenge then will be a timely certification by a small number of certifiers available for thousands of installations to be certified.”
This certification bottleneck is likely to force many importers to rely on default values, which are typically higher than actual emissions and therefore more costly. The European Commission’s “unrealistic time schedule” has effectively pushed importers toward the most expensive compliance option.
While it remains too early to observe definitive shifts in sourcing patterns, Julius suggested EU domestic steel producers may benefit from the import cost increases. “I guess the EU domestic steel producers can sit back, relax, and wait for the development of import prices and availability,” he said.
Eurometal has repeatedly approached the European Commission requesting a reliable basis for cost calculations well in advance of implementation, but Julius said those approaches “have been ignored by the Commission.” The organization argues the Commission is now penalizing importers and steel-using customers with “a framework of inflationary cost components and unrealistic verification timelines” that further weakens an already struggling industry.
Platts assessed domestic HRC at Eur630/mt ex-works Ruhr on Jan. 13 and Eur625/mt ex-works Italy, both unchanged day over day. Imported HRC was assessed at Eur500/mt CIF Antwerp and Eur495/mt CIF Southern Europe on Jan. 13, stable day over day.
EUROMETAL President speaks at PUDS conference on Steel Processing in Katowice
On 29 September, EUROMETAL President Alexander Julius participated in the high-level conference “Processing Means Distribution”, hosted by the Polish Steel Distributors Federation (PUDS) at the Silesian Museum in Katowice.
The event marked a significant moment for PUDS, which announced the inclusion of “steel processing” — reflecting the growing importance of value-added services and processing in the steel supply chain.
delivered a keynote presentation focused on the evolution of steel distribution in Europe, highlighting how processing is no longer just a complementary service, but a core strategic activity that increases value for both steel suppliers and manufacturing customers.
He also introduced EUROMETAL’s mission and work, with particular attention to the economic and industrial value of distribution and processing for the EU manufacturing base, the role of steel distributors in the implementation of EU sustainability tools such as CBAM, CSRD, ESPR, and ETS and EUROMETAL’s advocacy work in Brussels, including the Steel Derivatives initiative, aimed at protecting EU industry from unfair competition and carbon leakage.
The event offered a valuable platform for exchange between Polish stakeholders on how to strengthen the role of steel processors within a more integrated and sustainable distribution model.
EUROMETAL congratulates the newly elected President of PUDS and EUROMETAL Board Member Piotr Sikorski and applauds the initiative to evolve the federation’s scope. We also extend our sincere thanks to former PUDS President Iwona Dybał for more than a decade of excellent collaboration and commitment to strengthening the role of steel distribution in Poland and Europe.
EUROMETAL meets with DG TAXUD to discuss CBAM and Steel Derivatives
Last Thursday, 24 July, EUROMETAL President Alexander Julius and Director General Ricardo Silva held a virtual meeting with Mr. Gerassimos Thomas, Director-General of DG TAXUD (European Commission), to discuss two pressing concerns facing the steel distribution and manufacturing sectors: the implementation of CBAM and the trade treatment of steel derivatives.
During the exchange, EUROMETAL reiterated member concerns regarding the commercial uncertainty caused by the lack of benchmark values (for BOF and EAF routes) and the evolving role of the ETS price in CBAM calculations. EUROMETAL underlined that European manufacturers are already contracting steel imports for 2026 and require price clarity today, as many operate under fixed-price procurement models. The absence of key input values risks disrupting supply chains, especially as suppliers are unable to offer binding quotes for future deliveries.
Additionally, EUROMETAL informed DG TAXUD of its joint initiative with national distributor federations and EUROFER to advocate for equal protection for steel derivatives under EU trade measures. Currently excluded from safeguard and anti-dumping regimes, these downstream products are entering the EU at unsustainably low prices, undermining both EU processors and manufacturers. Insolvency rates in affected segments are rising sharply, reportedly reaching up to 15% per month in some cases.
EUROMETAL reaffirmed its commitment to working constructively with the European Commission to ensure that the full steel value chain — including distribution and downstream transformation — is effectively supported in the EU’s trade and decarbonisation policies.
EUROMETAL urges practical rules of origin to align with climate goals and steel industry needs
EUROMETAL, the voice of Europe’s steel distribution and service sector, has participated in the European Commission’s Implementation Dialogue on Rules of Origin (RoO), hosted in Brussels by the Directorate-General for Taxation and Customs Union (DG TAXUD) and chaired by Commissioner Maroš Šefčovič, who is responsible for EU trade and economic security.
The dialogue gathered key stakeholders to modernize and simplify the EU’s RoO framework, which is becoming central to trade defense, climate policy (including CBAM), and market access strategies.
EUROMETAL’s core demands
During the event, EUROMETAL president Alexander Julius emphasized the importance of practical, harmonized, and sector-specific RoO rules that reflect industrial realities. According to his recommendations, RoO should align with new climate and circular economy goals, including CBAM and the definition of “green” steel, practical rules should be developed for recycled content, “melted and poured” criteria, and value-added processing, digitization tools should be interoperable and SME-accessible, and origin-based restrictions for steel derivatives should be introduced to close trade defense loopholes.
The European Commission’s RoO reform agenda
Commissioner Šefčovič highlighted upcoming reforms, noting that RoO must be simplified, digitized, and tailored to specific industries. He stated that inconsistent enforcement across member states undermines the system’s effectiveness, emphasizing that harmonizing RoO application is essential to restoring fairness and reducing internal market barriers. Tools such as a European Data Hub, digital product passports, and AI-driven compliance platforms are being developed, with a focus on SME accessibility. According to Šefčovič, RoO will play a larger role in the establishment of CBAM, safeguards, and anti-circumvention measures, and a new EU steel safeguard framework is under development, with updates expected by late summer 2025. The EU will work closely with the US, particularly regarding global overcapacity, he added.
Next steps for the steel industry
The Commission has invited participants to submit sector-specific recommendations to shape the final reform package. EUROMETAL has pledged to maintain close engagement with its members, European policymakers, and trade and customs authorities to ensure that steel distribution and service sector priorities are fully reflected – especially on derivatives and circular economy compatibility.
EUROMETAL calls for practical reform and steel derivatives restrictions at EU Implementation Dialogue on Rules of Origin
EUROMETAL, together with major European steel producers and industry associations, participated in the European Commission’s Implementation Dialogue on EU Rules of Origin: A Business Perspective, hosted by DG TAXUD and chaired by Commissioner Maroš Šefčovič, responsible for Trade and Economic Security.
The dialogue brought together policymakers and industry stakeholders for a constructive exchange on how to modernise and simplify the EU’s rules of origin (RoO) — a key component of customs law that increasingly impacts trade defence, sustainability policies, and access to global markets.
A strong steel industry presence
EUROMETAL President, Alexander Julius, joined a broad coalition of stakeholders from across the steel value chain — including major producers, processors, and trade associations — to deliver a unified message: rules of origin must become more practical, consistent, and fit for purpose in a changing global trade environment.
The discussion focused on aligning RoO with business realities, eliminating national inconsistencies, and ensuring rules support the EU’s climate and industrial policy goals.
Key Messages from Commissioner Šefčovič
Commissioner Šefčovič acknowledged the critical role of rules of origin and committed to a comprehensive reform process.
His main takeaways included:
- Simplification and sector-specificity: RoO should be easier to apply and adapted to the specific characteristics of each sector. A sector-by-sector approach was welcomed by all participants.
- Harmonisation across the EU: Inconsistent implementation by Member States creates major challenges. Harmonising RoO application is essential to restoring fairness and reducing internal market barriers.
- Digitalisation as a cornerstone: The upcoming Customs Reform will introduce a European Data Hub, digital product passports, and AI-driven compliance tools — with particular attention to SME accessibility.
- Strategic role of RoO in trade defence: Šefčovič confirmed that rules of origin are increasingly linked to CBAM, safeguard measures, and anti-circumvention efforts — especially in critical sectors like steel and aluminium.
- Post-2026 steel strategy: A new framework for EU steel safeguard measures is under development, with updates expected in late summer 2025. The EU will also seek closer coordination with the US on tackling global overcapacities.
EUROMETAL’s contributions
During the dialogue, EUROMETAL highlighted the complexity faced by steel distributors and service centers in complying with origin requirements, particularly when products are transformed or sourced across multiple jurisdictions.
Key recommendations included:
- Align RoO with new climate and circular economy goals, including CBAM and the definition of “green” steel.
- Develop practical rules for recycled content, “melted and poured” criteria, and value-added processing.
- Ensure digitisation efforts are interoperable and accessible to SMEs, which represent the backbone of the steel distribution sector.
- Introduce specific origin-based restrictions on steel derivatives, to prevent circumvention of EU safeguard and trade defence measures. EUROMETAL stressed that derivatives must not become a loophole undermining the effectiveness of existing protections.
EUROMETAL also stressed the need for predictable, harmonised rules that can be easily implemented across all 27 Member States — avoiding costly delays and inconsistent customs decisions.
Next steps and continued engagement
The European Commission called on all participants to submit written, sector-specific input. Feedback will inform the design of future RoO reforms and help guide customs digitalisation and trade negotiations.
Šefčovič closed the session by reaffirming the Commission’s openness to continued dialogue: “We want to get this right — and that means listening to you. Give us practical, detailed input so we can build solutions that work on the ground.”
EUROMETAL will continue to coordinate closely with its members and the broader steel community to ensure that the voice of the distribution and service sector — including concerns on steel derivatives — is fully reflected in the EU’s evolving trade and customs framework.
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 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.
Steel market participants warn of risks in the new EU state aid program
Energy prices and protection against unfair imports remain a problem for the region’s steelmakers
Steel market participants and industry observers warn that the new EU state aid framework program designed to support the Clean Industry Agreement (CISAF) could be undermined by uneven implementation at the national level, Fastmarkets reports.
EUROMETAL President Alexander Julius noted that the association welcomes the new system as a step in the right direction, especially in the context of protecting Europe’s green industrial base.
“The new flexibility is helpful, but its effect will be uneven unless member states actively mobilize support plans – and this remains uncertain in many cases, especially for mid-sized market participants in the steel value chain,” he said.
EUROMETAL, which represents European distributors of steel, pipes, and metal products, has repeatedly highlighted the critical issue of high energy costs for the European metallurgical industry for all parties in the supply chain and the creation of value for metal products.
Access to affordable renewable energy is a challenge for European steelmakers’ decarbonization efforts. According to estimates by the Fastmarkets research group, between 40 and 50 million tons of new green steel production capacity using only electric arc furnaces or DRI/EAF will be commissioned in the region between 2025 and 2030. Currently, about 45% of European steel is produced using the electric arc melting method.
The transition to the DRI/EAF production route raises concerns, particularly regarding energy efficiency. Representatives of steel mills note that a sufficient amount of renewable energy at affordable prices is needed. At the same time, the cost of electricity in Europe remains much higher than in many other countries around the world. Industrial tariffs often exceed €100/MWh (for comparison, costs in the US and China are often closer to €30-50/MWh).
Sources among manufacturers warn that under such conditions, even taking into account CBAM costs, imports may still be more competitive than European steel.
At the same time, as Alexander Julius announced at the conference marking the 75th anniversary of EUROMETAL, the latter has begun collecting information from EU associations, national federations, and steel users on imports of cheap steel derivatives into the bloc. The association is analyzing the growth in supplies from abroad compared to the steady decline in steel consumption in Europe and domestic production, Kallanish writes.
According to Julius, Brussels and national governments are “listening,” so this political momentum must be seized. The EUROMETAL president also remains optimistic about the potential for creating a level playing field for steel processing companies in Europe.
The European Commission launched CISAF on June 25. The program, which will run until 2030, allows member states to provide aid for clean energy, industrial decarbonization, and the development of clean technologies.
Earlier, EUROMETAL emphasized the need to harmonize European regulations and support the industry on the path to decarbonization.
