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.
EUROFER: New EU trade measures needed in face of US tariffs
The European Steel Association (EUROFER) has stated that, with US tariffs now raised to 50 percent, the only way to avoid the further erosion of the European steel market is the swift implementation of the “highly effective trade measure” promised by the European Commission.
Expecting a massive deflection of the 27 million mt of steel previously destined for the US towards the European market due to the doubling of US tariffs on steel, EUROFER noted that, with global overcapacity at record highs and import penetration in the EU up to 30 percent, the EU is being flooded by cheap foreign steel.
Reporting that most of the 3.8 million mt of EU steel exports to the US are now under a de facto import ban, the association stated that, with the 50 percent tariff, even Europe’s highest-quality, most competitive steel products will be priced out.
“We need the Commission’s promised ‘highly effective trade measure’ as a lifeline, and we need it now. If we wait until 2026, when the current EU steel safeguard expires, much of our industry will already be submerged beyond recovery. … A negotiated EU-US solution is paramount to preserve our exports at this critical moment for the European sector. The US and the EU should reopen negotiations, stalled in 2024, to address global overcapacity jointly,” Axel Eggert, director general of EUROFER, said.
EU steelmakers & distributors demand whole value chain support
Europe’s steelmakers and steel distributors and processors have continued their alliance calling for measures to support the continued existence of the European downstream steel-using industries.
In a joint note, Eurofer and Eurometal warn that processors “face substantial challenges to remain competitive and require stronger, more targeted support.” They add: “A steel industry confronted with a shrinking customer base, particularly in downstream sectors, poses broader risks for the entire European industrial ecosystem, as the same accounts for the European steel customer base that requires a viable steel industry in Europe.”
Just a few years ago, in the pre-Ukraine war and pre-Covid era, such close alignment between producers and distributors on policy issues was a rare occurrence. But rapidly shrinking steel production and demand in Europe, coupled with the geopolitically fragmented world of today mean Europe’s steel value chain must come together to fight for its existence, Kallanish notes.
Eurofer and Eurometal met to discuss collaboration after the European Commission’s Steel Dialogue on 4 March, with Eurometal raising concerns regarding the impact of imported steel derivatives on European distribution, processing, and manufacturing.
Both organisations agree that a robust manufacturing base is “essential for strategic autonomy and involves the entire steel supply chain – including both steel production and processing.” The Steel and Metals Action Plan represents a strong starting point, where the European Union recognises industry challenges and importance, but “this requires concrete translation into effective regulatory frameworks”.
Eurometal represents a significant portion of the intermediate steel processing market in Europe – comprising nearly 50% of deliveries in the EU, the statement adds.
The weakening of this supply chain puts at risk 13.6 million direct jobs across steel processing, intermediate suppliers, and manufacturing sectors in the bloc, and threatens a wider European deindustrialisation, it continues.
“The focus of European policymakers needs to be expanded to the complete supply and value chain of our industry,” says Eurometal president Alexander Julius. Eurofer director general Axel Eggert meanwhile says the organisation “appeals on EU policymakers to support our joint efforts”.
At least as far as trade is concerned, the EU has already promised, as part of the Steel & Metals Action Plan, to extend the Carbon Border Adjustment Mechanism (CBAM) to cover downstream products.
Adam Smith Poland
Worsening overcapacity forecast shows post-safeguard measure urgency: Eurofer
The need for EU post-safeguard measures has been amplified further by the OECD’s latest finding that excess global steel capacity will grow from 602 million tonnes in 2024 to 721mt by 2027, five times the size of EU production, warns Eurofer.
At its meeting this week, the OECD Steel Committee concluded that growing overcapacity has resulted in a surge in exports of low-priced steel that is threatening Steel Committee members’ production. Chinese steel exports have more than doubled since 2020, surging to 118mt in 2024, while the country’s steel imports plunged by almost 80% to 8.7mt. Profitability continued to decline in 2024 and a growing number of countries have taken trade action.
“Without policy adjustments in countries that are fuelling the excess capacity, or disincentives for them to export their surplus steel, global steel industry problems will intensify,” OECD Steel Committee chair Ulf Zumkley noted after the meeting. Global overcapacity growing to 721mt will put “enormous pressures on the viability of even highly competitive steelmakers”, he continued.
The reduced profitability continues to hamper the steel industry’s available capital and therefore efforts to decarbonise.
“The trends illustrated by the OECD prove that the global steel overcapacity problem not only remains unsolved but it’s constantly and significantly worsening. This unsustainable situation points to the shortcomings of the EU safeguards where the growing disconnection between imports allowed into the EU market and actual demand cannot be addressed,” Eurofer director general Axel Eggert says in a note sent to Kallanish.
As part of its Steel & Metals Action plan published last month, the European Commission said it would present by the third quarter a measure to replace the steel safeguard mechanism from 1 July 2026.
Adam Smith Poland
Strategic steps for Steel: EU to outline long-term industry measures
On March 19, the EU plans to present an Action Plan on Steel and Metals, which will include additional sector-specific priority actions. This is stated in the report of the European Commission (EC) on the results of the Strategic Dialogue on Steel.
In addition, the plan will contain long-term steps to replace trade remedies that expire in June 2026. The document will also address a wide range of issues related to the industry, such as ensuring the commercial viability of clean steel production and responding to unfair trade practices.
The plan will include the results of a strategic dialogue with key representatives of the sector, which took place on March 4 under the chairmanship of EC President Ursula von der Leyen.
The strategic dialogue with the EC President brought together steel sector leaders and industry associations.
The European Steel Industry Association (Eurofer) welcomed the initiative. Eurofer CEO Axel Eggert said: “We are grateful that the Commission – at the very highest level – not only recognises these challenges but wants to work with our industry to find the right solutions».
The association continues to push for decisive action in four priority areas – trade defence measures, watertight CBAM, competitive energy prices and scrap retention in Europe.
Alexander Julius, President of EUROMETAL, which represents European steel, pipe and steel product distributors, emphasized during the dialogue that fair competition remains a crucial factor for the steel industry, and it is important for the EU to create a level playing field for the sector. In his opinion, this can be achieved by extending safeguard measures to semi-finished and finished products, which currently enter the bloc without hindrance. In addition, support for distribution, processing and manufacturing in the EU is important to stimulate innovation and create a basis for sustainable industrial activity, given Europe’s position between the US and China.
EUROMETAL also confirmed its willingness to actively participate in the CBAM working group.
As GMK Center reported earlier, on February 26, the European Commission presented the Clean Industry Agreement, a plan to support the competitiveness and future of manufacturing industries in Europe. The document positions decarbonization as a powerful driver for industrial growth. The Commission is also taking steps to make the regulatory environment more efficient, while reducing bureaucratic obstacles to business.
EUROFER: steel demand forecast to recover by 3.8% in 2025
EU apparent steel consumption should recover 2.2% on-year in 2025, provided the industrial outlook improves and global tensions ease, Eurofer says in its latest outlook seen by Kallanish. However, this is a downward revision from the previous forecast after 2024 consumption is also expected to have declined deeper than previously thought.
2024 demand is expected to have fallen 2.3% versus 2023, compared to Eurofer’s forecast last October of a 1.8% drop. Demand in 2025 had been forecast then to recover by 3.8%.
In any case, no improvement in apparent steel consumption is expected in the first quarter, and consumption volumes are expected to remain far below pre-pandemic levels.
Q3 2024 consumption is confirmed to have declined 0.9% on-year, while domestic deliveries fell 2.3%. EU steel imports inched up 1% in Q3, maintaining a high, 28% market share. EU exports rose 4%, driven by flat products.
Expectations for the recovery in steel-using sector output in 2025 have also been revised down. This is now expected to grow 0.9% versus the October forecast of 1.6%. Steel-using sector output in 2024 is thought to have declined 3.3% versus the previous forecast for a 2.7% drop, due mainly to expected drops in construction and automotive output.
Economic uncertainty will continue to take its toll in the coming quarters despite monetary easing by the European Central Bank, the effects of which will not be fully visible in the short term, Eurofer notes.
The Steel Weighted Industrial Production (SWIP) index dropped for the third consecutive quarter in Q3, by 4.1% on-year.
The outlook remains dominated by “a worsening combination of uncertainties in energy prices, weak manufacturing sectors’ conditions, inflation still above target levels, severe geopolitical tensions and economic challenges, including possible future trade tensions,” Eurofer notes.
Its director general, Axel Eggert, adds: ““We can no longer cope with a situation where external factors beyond steelmakers’ control – massive steel dumping, uncompetitive energy and carbon prices, collapsing demand, trade and geopolitical tensions – are structurally undermining our industry. The initiatives the European Commission will put forward in the coming weeks will determine the future of the EU steel industry, its quality jobs and, with it, the future of EU manufacturing, competitiveness and security.”
Adam Smith Poland