End-user relocation unlikely, Turkey studying CBAM impact
Steel consumption has suffered globally in recent years due to slowing end-user sector activity amid high interest rates in the EU and US, geopolitical turmoil and fierce competition from China, panellists noted at Kallanish Global Flat Steel 2025 in Istanbul last week.
“I don’t think that trade barriers will force the end users of steel to relocate from one region to other places, like many people suggest,” said Eurofer director of economic and market analysts Alessandro Sciamarelli. “The process of relocation is very complex, which takes time and big investments. One of the main goals of the Trump administration in the US is to relocate businesses to the US, but it remains to be seen if this is going to be successful and I’m a bit sceptical.”
“In Europe, we need strong industries through all the supply chains, which includes steel consumers like the automotive industry, construction and others,” he added.
According to him, no real improvement in steel demand is in sight, due to US tariff-related trade disruption. “High production costs and global uncertainty – geopolitical and trade-related – continue to weigh on the sector. Import pressure also remains high, combined with expanding global excess capacity,” he observed.
“Relocation of steel mills from one region to another is not a solution,” noted Beko director for purchasing Gonca Yucel Kilic. “We need good analysis how the European measures will impact end user activity and to find a solution for all sites.”
“Almost 40% of our production is exported to Europe and, with CBAM, there will probably be a reduction of shipments to the EU, but for the moment we don’t know in Turkey how this will impact us,” said Yildiz Demir Celik supply chain director Pelin Arkan. “The reason for this is that Turkey does not have a national carbon pricing system that aligns with the European Union’s CBAM framework and we don’t know how this calculation will work for the country.”
Svetoslav Abrossimov Bulgaria
EUROMETAL and EUROFER call for immediate action to protect the European steel value chain
EUROMETAL and EUROFER have issued a joint statement calling for the urgent implementation of robust trade measures to safeguard the European steel value chain, with a particular focus on steel derivatives.
The European steel industry is facing unprecedented challenges. Deindustrialisation is accelerating across the production, distribution, and processing sectors — jeopardising the resilience and sustainability of an industry that is fundamental to Europe’s strategic autonomy. Imports of steel-based downstream products, many of which are not subject to existing safeguard or anti-dumping measures, continue to displace EU-manufactured goods and undercut domestic production.
Steel derivatives vital to Europe’s green transition — including components used in energy infrastructure — now make up as much as 50% of EU consumption, threatening jobs, innovation investment, and long-term viability across the supply chain.
The joint statement reflects a strong consensus across the European steel distribution sector, with the active participation of 12 national federations of steel distributors from across the EU27, united in urging policymakers to act decisively.
The joint statement reaffirms the shared commitment of EUROMETAL and EUROFER to an integrated, competitive, and future-ready steel ecosystem. Echoing the Steel and Metals Action Plan, the two associations stress that excluding downstream products from trade protections only shifts pressure further along the supply chain and increases the risk of carbon leakage under CBAM.
With global trade dynamics shifting — including record-high Chinese exports of both steel and embedded steel products — the statement underlines the urgent need for action to preserve European industrial capacity and ensure a just transition to a green and digital economy.
Joint Statement by EUROFER and EUROMETAL – Steel Derivatives
EUROFER calls for emergency measures as US Tariffs crush EU steel exports
The delay and ongoing uncertainty about a deal on tariffs between the EU and the U.S. further worsens the crisis for the European steel industry.
U.S. steel tariffs at 50% are adding fuel to an already explosive situation, putting the sector at risk of losing all its exports to the U.S. and facing a surge of deflected trade flows redirected from the U.S. to the EU market.
The lack of bold and timely implementation of the Steel and Metals Action Plan is further accelerating the sector’s deterioration, says the European Steel Association.
“We cannot continue with U.S. steel tariffs at 50%. As we lose our major export market, the European market is being flooded by the steel the U.S. is no longer absorbing. We are particularly disappointed by the absence of a joint EU-U.S. approach preserving EU steel exports to the U.S. and tackling trade diversion towards the EU on top of massive global overcapacity — now 5 times larger than the EU’s total steel production. This glut is destroying entire value chains, undermining industrial resilience, defence capabilities and the green transition”, said Dr Henrik Adam, President of the European Steel Association (EUROFER).
“What is even more concerning is that while the U.S. — regardless of the administration — has consistently pursued a bold industrial strategy, the EU has fallen behind. The implementation of the Steel and Metals Action Plan has yet to deliver tangible results. Any potential benefits from the last EU steel safeguard review have been entirely wiped out due to its low level of ambition and the disastrous impact of the U.S. tariffs, which is only beginning to materialise”, added Dr Adam.
Benefitting from lower energy costs, green subsidies, Buy U.S. steel policy and strong trade protection with the reactivation of steel tariffs, the U.S. steel industry first regained price competitiveness versus imports, and then has invested in 8-9 million tonnes of new capacity. The increase to 50% blanket tariffs is now expected to further boost U.S. domestic capacity utilisation securing volumes for newly built production lines by reducing imports and ramping up domestic output. In stark contrast, the EU lost 10 million tonnes of capacity in 2024 alone — its highest annual closure rate ever. Before the 50% tariff hike, the EU was the third-largest exporter to the U.S. after Canada and Brazil, accounting for around 4 million tonnes of steel exports.
Meanwhile, EU policy responses fall short. The Affordable Energy Action Plan and the Clean Industry State Aid Framework have not delivered substantial energy price relief for energy-intensive industries. The root cause — the EU’s electricity market design, which continues to deliver uncompetitively high prices — remains unaddressed, despite being central to the Draghi report.
The most important initiatives of the Steel and Metals Action Plan are expected only after summer: in September, the new ‘highly effective trade measure’ to replace the current safeguard to protect EU steel capacities, and by December, a proposal to close major loopholes in the Carbon Boarder Adjustment Mechanism (CBAM) – including resource shuffling and also export leakage, which has already been delayed.
“The game changer for a business case in Europe is not there yet. If these key measures on trade and CBAM are addressed by the European Commission as half-heartedly as energy prices, we will inevitably continue to see more capacity closures, job losses, and stalled decarbonisation projects. If that happens, there will only be losers: EU steel producers wiped out by cheap, carbon-intensive imports, and an EU transition and climate ambition that falter without solid industrial foundations”, concluded Dr Adam.
Eurofer: US friction delays EU demand recovery
The recovery in steel demand in the EU has been delayed until 2026, Alessandro Sciamarelli, director of economic and market research at European steel producers’ federation Eurofer, told delegates at Kallanish Europe Steel Markets 2025 in Amsterdam on 17 June. Meanwhile, the bloc is at risk of remaining a structural net importer of steel.
EU steel-weighted industrial production (SWIP) fell by 3.7% on-year in 2024, driven by the automotive sector, but with declines also across construction, mechanical engineering, domestic appliances and other sectors. However, most of Europe has managed a “soft landing”, he noted. Only Germany went into a formal recession over 2023-2024.
In 2025, SWIP is expected to decline another 0.5%, Sciamarelli added. The construction sector has stabilised, thanks in large part to major public spending investments. Automotive remains weak, falling another 2.6%. An expected recovery this year has been postponed by trade frictions with the USA, to which the automotive sector is particularly vulnerable.
In 2026, Eurofer expects SWIP to recover 1.3% with all major sectors seeing some improvement. However, this would still leave demand far below 2008 levels.
Sciamarelli also noted there is significant uncertainty around any forecasts. In addition to trade frictions, there are a number of geopolitical risks. Inflation has returned to around the 2% target, but a spike in energy prices could derail this.
The EU has been a net steel importer since 2017. In addition to high domestic production costs, global overcapacity is resulting in high volumes shipped to the bloc, Sciamarelli argued. “Is the EU permanently becoming a net importer of steel products?” he asked.
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
EUROFER and EUROMETAL convene to support the European Steel Supply Chain
In April 2025, EUROFER and EUROMETAL leaders convened to discuss potential collaboration areas for strengthening messaging and initiatives to support the European steel and steel-using industries.
This initial exploratory meeting was prompted by the Steel Dialogue on 4 March 2025, hosted by the European Commission, during which EUROMETAL raised concerns regarding the impact of imported steel derivatives on European distribution, processing, and manufacturing industries.
Both EUROFER and EUROMETAL acknowledged 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 recognizes industry challenges and importance, but this requires concrete translation into effective regulatory frameworks. Sharing knowledge and perspectives across the value chain will enhance the design and implementation of such policies and measures.
EUROMETAL represents a significant portion of the intermediate steel processing market in Europe — comprising nearly 50% of deliveries in the EU. These processors face substantial challenges to remain competitive and require stronger, more targeted support. 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.
The two associations underscored that the weakening of this vital supply chain puts at risk 13.6 million direct jobs across steel processing, intermediate suppliers, and manufacturing sectors in the EU. The consequences go far beyond economics — this situation threatens a wider European deindustrialization, with the relocation of R&D capacities, loss of innovation hubs, and increased dependence on external markets.
The meeting marked an excellent beginning for further analysis and discussions and will be followed up in due course.
Axel Eggert, Director General of the European Steel Association (EUROFER), stated: “Both EUROMETAL and EUROFER have a strong interest in a vibrant European steel value chain at the benefit of the EU’s economic resilience and strategic autonomy as well as investment, innovation and quality jobs in Europe. We therefore appeal on EU policymakers to support our joint efforts.”
Alexander Julius, President of EUROMETAL, commented: “The EU steel using and steel making industries are at stake. The focus of European policymakers needs to be expanded to the complete supply and value chain of our industry. Joint efforts of EUROFER and EUROMETAL will form a solid basis approaching this important topic sustainably.”
Joint Statement – 
EUROMETAL meets with EUROFER to address challenges facing the European Steel Market
On a visit to EUROFER headquarters in Brussels yesterday, EUROMETAL held a high-level meeting with Mr. Axel Eggert, Director General, and Mr. Karl Tachelet, Deputy Director General for International Affairs and External Relations.
EUROMETAL was represented by its President, Alexander Julius, Vice-President Fernando Espada, Board Member Jaap Jan Aardenburg, and Director General Ricardo Silva.
During the discussions, EUROMETAL raised serious concerns about the growing influx of imported finished steel products entering the European market. This trend, already identified in recent exchanges with processors and manufacturers, poses a significant threat to the entire European steel value chain.
EUROMETAL emphasized that the increasing volume of these imports of ready-made steel-based products is undermining both the distribution and production sectors. The impact is being felt across logistics, processing, and distribution, with broader implications for the overall competitiveness of the European manufacturing industry — an industry that supports 13.6 million direct jobs.
EUROMETAL called for close coordination and joint action with EUROFER to defend the integrity of the European market and ensure a level playing field for all stakeholders in the steel ecosystem.
EUROFER appreciated our position, and the meeting proved to be a solid foundation for exploring further collaboration in support of our shared agenda.
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
Eurofer: US tariffs threaten European steel and European sovereignty
The imposition of a 25% blanket tariff by the United States’ administration on all steel imports exacerbates an already dire market environment for the European steel industry and poses a genuine threat to its future. The sector expects the European Union to respond with an effective revision of the steel safeguard measures that will mitigate the impact of the U.S. tariffs and ensure the longevity of the industry in the long-term, says the European Steel Association.
“President Trump’s ‘America First’ policy threatens to be a final nail in the coffin of the European steel industry. If European steel disappears, so too does European automotive, European security and defence, energy infrastructure, transportation and others. What is at stake is European sovereignty”, said Dr. Henrik Adam, President of the European Steel Association (Eurofer). “Under the first Trump administration, we already witnessed the huge impact of Section 232. EU steel exports to the U.S. decreased by over 1 million tonnes, while for every three tonnes of steel deflected from the US market because of Section 232, two tonnes arrived in the EU.
Today, the overall market situation for European steel is much worse than in 2018. These new measures imposed by Trump are more extensive, therefore the impact of the U.S. tariffs is likely to be far greater”, continued Dr. Adam.
Firstly, the Trump administration has removed all product exemptions and Tariff Rate Quotas that the EU had previously negotiated. With EU steel exports to the U.S. already having fallen by 1 million tonnes, the EU now stands to lose at least another 1 million tonnes of steel exports to the US. Moreover, the blanket import tariff also now includes ‘derivative’ steel products, reducing export opportunities for a further 1 million tonnes of EU products.
Secondly, with global excess capacity having reached record levels in 2024 and set to increase again in 2025, the EU market – already saturated with cheap steel imports from Asia, North Africa and the Middle East – will be further flooded as steel intended for the US market will be redirected. 18 million tonnes of steel were exported to the U.S. under preferential regimes and are now at risk of deflection towards the EU market. EU steel production, which lost 9 million tonnes of capacity and 18,000 jobs in 2024 alone, is at even greater risk. There is also the prospect that yet more steel will be deflected to the EU market if additional reciprocal tariffs are imposed by the U.S.
“Simply put, while all other countries – today the U.S. – protect their national steel production, the EU has had the most vulnerable market in the world”, said Dr. Adam. “Our producers already face the highest energy prices while having the highest climate ambition. Meanwhile, they are being undercut by cheaper, more carbon intensive foreign imports”, he added.
In view of the existential threat to European steel caused by the spill-over of global overcapacity, foreign subsidies and dumping, now compounded by the new U.S. tariffs, the EU has committed to revising the current EU steel safeguard regime by 1 April.
“It is crucial that the revised steel EU safeguard measures are robust and effective to respond immediately and decisively to counter further deflection of steel imports flooding the EU market. The time has come”, concluded Dr. Adam.
