EUROMETAL joins European Commission’s Strategic Dialogue on Steel
The European steel sector took center stage as European Commission President Ursula von der Leyen launched the Strategic Dialogue on the Future of the Steel Sector. The high-level meeting gathered key industry leaders, social partners, and stakeholders, including EUROMETAL President Alexander Julius, to discuss the challenges and opportunities facing the European steel supply chain.
A critical moment for European Steel
President von der Leyen opened the dialogue by emphasizing the historic and strategic importance of steel to the European Union, stating:
“Our European Union was built on a community of coal and steel. Steel is everywhere, from wind power to defence. But European steelmakers are at a crossroads, facing the challenges of necessary decarbonisation and partly unfair global competition. Today’s Dialogue is to lead to a tailored plan to help this sector decarbonise and thrive globally. We join forces to make a strong business case for steel made in Europe.”
The dialogue acknowledged that while steel production remains a cornerstone of European industry, the sector is under significant pressure due to high energy costs, global overcapacity, and declining product prices. These challenges have impacted investment in clean steel technologies, which are essential for the sector’s decarbonisation efforts.
Key outcomes of the Steel Dialogue
This first session laid the groundwork for future policy actions, reinforcing the importance of collaboration between industry and policymakers. Discussions were closely aligned with the Clean Industrial Deal, adopted in February, which aims to: lower energy costs for energy-intensive industries, create lead markets for low-carbon steel and accelerate investments through financial support exceeding €100 billion for clean manufacturing in the EU.
The dialogue will contribute to the development of a Steel and Metals Action Plan, which will outline sector-specific priority actions and long-term measures to replace current trade defence safeguard measures expiring in June 2026. The plan will focus on ensuring clean steel production is commercially viable, developing a strong response to unfair trading practices and identifying sustainable long-term solutions to safeguard the European steel market.
EUROMETAL’s Role and Key Priorities
As the representative body for European steel distributors, traders, and service centers, EUROMETAL played a pivotal role in ensuring that the concerns of steel distribution and processing were heard. EUROMETAL President Alexander M. Julius participated in the discussions, advocating for:
- A level playing field for steel users and manufacturers.
- Inclusion of finished and semi-finished products under protective trade measures.
- Stronger support for EU steel distribution, processing, and manufacturing to drive innovation and ensure sustainable industrial activities.
- A more inclusive approach in the Carbon Border Adjustment Mechanism (CBAM) to facilitate compliance and secure fair competition.
The road to the Steel and Metals Action Plan
Following this Strategic Dialogue, Executive Vice-President Stéphane Séjourné has been tasked with presenting the Action Plan on Steel and Metals on 19 March 2025. This plan will define the next steps for policymakers and industry stakeholders, with regular involvement from the European Parliament and the Council.
EUROMETAL remains committed to actively engaging in this process to ensure that the voice of steel distributors, traders, and service centers is represented in shaping the future of European steel.
The Strategic Dialogue gathered top industry stakeholders, including: EUROMETAL, EUROFER, ESPA, EURIC, Euromines, FIEC, Agora Industry, WindEurope, ACEA, ArcelorMittal, Tata Steel Europe, ThyssenKrupp Steel Europe, Salzgitter, Riva-Stahl, Outokumpu, Celsa Group, Feralpi, Stegra, Zeliziarne Podbrezova, IndustriAll and GravitHy.
EUROMETAL President’s reactions after Steel Dialogue
European Commission President Ursula von der Leyen hosted today the Strategic Dialogue on Steel, bringing together key industry leaders to address the future of Europe’s steel sector. EUROMETAL President Alexander M. Julius participated in the discussions, ensuring the voice of steel distributors and service centers was heard on critical industry challenges.
EUROMETAL emphasized that fair competition remains crucial for the steelmaking sector. However, considering the 7.4 million people employed in the manufacturing of steel and metal-based products in the EU, it is equally important to create a level playing field for this sector. This can be achieved by extending protective measures to semi-finished and finished products, which currently enter the EU without any barriers. Given Europe’s position between the USA and China, supporting EU distribution, processing, and manufacturing is even more essential to foster innovation and establish a foundation for sustainable industrial activities.
In a subsequent discussion with European Commissioners, EUROMETAL also reiterated its desire to actively participate in a CBAM working group. This initiative would help the European Commission ensure that regulations are feasible for EU declarants, thereby maintaining a reliable service for the EU steel-using industry.
Eusider Trading joined as Member of EUROMETAL
EUROMETAL is delighted to welcome Eusider Trading as a new member company.
Eusider Trading SA, established in Switzerland in 2019, specializes in the global trading of flat and long steel products, as well as raw materials, with a particular focus on Metallics. The company procures high-quality materials worldwide, supplying key markets across Europe, MENA, and Latin America.
A strong emphasis is placed on coils, especially coated materials sourced from top-tier suppliers, which are regularly distributed to major steel service centers and stockists worldwide.
Thanks to the leadership of their CEO, Marco Micciché, and the active role of experienced steel professionals coming from previous engagements in primary international steel trade companies, Eusider Trading has expanded its reach and solidified its presence in global markets over the past five years.
Discover more: eusidertrading.com
European Commission schedules Steel Dialogue, reinforces strategic role
European Commission President Ursula von der Leyen will host a Strategic Dialogue on Steel on 4 March, Kallanish notes.
In a statement issued on Tuesday, the Commission reinforced that steel is a strategic sector, saying it plays a central role in the EU’s broader strategic autonomy.
The meeting is anticipated to bring together steel manufacturers, raw material suppliers, off-takers, and representatives of social partners and civil society. EUROMETAL will be represented by its president, Alexander Julius, the association says.
This comes ahead of the dedicated Steel and Metals Action, which Executive Vice-President Séjourné has been tasked with delivering in the spring. Feedback from the Steel Dialogue and related wider consultation will be fed into this dedicated plan.
“The steel industry is a key sector of our European single market. At the same time this industry is of utmost importance in our fight against climate change,” von der Leyen notes. “The Strategic Dialogue will help develop a concrete Action Plan to tackle the unique challenges of this sector in the clean industrial transition. We want to ensure that the European steel industry is both competitive and sustainable in the long-term.”
“Europe has a plan for its industry: we must produce more, we must produce clean, and we must produce European,” says Séjourné. “This starts with our most strategic sectors: steel is one of them. We must protect our steel sector from unfair foreign competition and boost our own production of clean European steel.”
Key Strategic Dialogue discussion points will include how to enhance competitiveness and circularity, drive the clean transition, decarbonisation, and electrification, ensure fair trade relations and an international level playing field. The Commission will inform and consult with the Council and European Parliament throughout the Dialogue process.
Proposals include the joint purchasing of raw materials on behalf of interested companies, which could ensure diversification of supplies, and a Circular Economy Act to incentivise the use of secondary scrap material in manufacturing. Also discussed will be the use of guarantees and risk reduction instruments to facilitate conclusion of long-term power purchase agreements, and to accelerate the uptake of hydrogen.
To speed up investment, the meeting will also discuss the creation of a dedicated financing mechanism for industrial decarbonisation based on the auctions-as-a-service model.
On the foreign trade front, global overcapacity is expected to reach 630 million tonnes in 2026. This means “it is essential to make more efficient use of anti-dumping or anti-subsidy duties to prevent that our market becomes an export destination for state-induced excess steel production,” the Commission says.
In addition, the safeguard measures for steel currently in place are set to expire by June 2026. The Commission will define a long-term solution to replace those measures in light of global non-market overcapacity, it concludes.
Adam Smith Poland
EUROMETAL survey: Europe sentiment improves, inventories foreseen declining
Global sentiment in European distributors’ association EUROMETAL’s latest, January survey indicates a slight improvement in current activity, although future activity, stock level and pricing expectations remain largely unchanged.
Although the three customer segments indicated stable current activity, the global sentiment indicator also includes the perspectives of steel experts that are not accounted for in the individual customer sector categories. This contributed to the sentiment improvement, EUROMETAL tells Kallanish.
Notably, the flat steel service centres distribution segment expects slight decreases in both activity and stock levels in the next three months.
By responder activity, those serving the automotive sector see slightly improved current activity and expect a slight decline in stock over the next three months. Survey respondents serving the construction, energy, manufacturing, packaging and tube sectors also see a slight improvement in current activity. Except for construction and energy, these segments also expect a slight decline in stock.
In terms of geography, respondents in France, the Nordics and Visegrad countries see slightly improved current activity, with the latter two also expecting a slight decline in stock over the next three months. The UK+Ireland see a slight deterioration in current activity, while Turkey expects higher stock levels and activity in the next three months. Pricing is seen remaining stable all round.
EUROMETAL divides the survey replies into three sets – “customer sector”, meaning association member type; “customer region”; and “responder activity”, referring to the end-use sector served.
Adam Smith Poland
EUROMETAL asks for clarifications on EU safeguard review
EUROMETAL, the federation of steel, tubes and metals distribution and trading, has formally requested that the European Commission reevaluate certain critical aspects of its review of EU safeguard measures on steel imports.
In a letter to the Commission obtained by Kallanish, the association urges the EC to extend the deadline of 10 January 2025 for the submission of questionnaires related to the review and harmonise customs rules across member states, among other considerations.
Given that the holiday season that occurs from late December to early January, the deadline of 10 January appears to be overly restrictive. A considerable number of EUROMETAL members encountered substantial difficulties in collecting the required data and organising their submissions within the timeline. In response, the European Commission has granted a three-day extension to 13 January. Although the extension is brief, the association contends that it gives businesses more time to better prepare their answers.
The review should also consider the need for standardised customs processes across the EU to make sure that the rules are applied fairly and consistently. This would create a level playing field.
“Divergences in customs rules across member states often result in inconsistent and incorrect declarations, creating unnecessary administrative burdens and an unequal treatment of European importers,” the letter states.
Clarification regarding the definition of “union users” in relation to the review of safeguard measures is urged.
“Specifically, does this definition include the distribution segment (such as service centres, stockholders and traders), which plays a pivotal role in supplying 60% of all steel products to end-users?” EUROMETAL inquires.
The organisation expresses its support for Eurofer’s proposal regarding the establishment of a steel summit by the European Commission. A summit of this nature would serve as a forum for stakeholders to deliberate on the prevailing challenges of the sector and represent an opportunity to work together in identifying solutions that benefit the overall steel value chain.
EUROMETAL represents 17 European national federations of steel distributors, 35 distributors and service centres as well as 25 trading companies.
The European distribution sector procures 70 million tonnes of steel annually and supplies more than a million small and medium-sized end users. It accounts for 60% of the supply of all steel products to end users in EU.
Natalia Capra France
EUROMETAL gives EC input on ongoing steel safeguard measure review
European steel distribution and trading association EUROMETAL President Alexander Julius has written to the European Commission Jan. 10 asking for a couple of changes and some clarification on the ongoing functional review of the EU safeguard measures on steel imports initiated in December.
On Dec. 17, the EC announced a review of the safeguard measures applicable to imports of certain steel products with the aim of reassessing the allocation and management of tariff rate quotas to ensure they align with current market dynamics and stakeholder interests.
In the letter addressed to European Commissioner for Internal Market and Services Stephane Sejourne, Executive Vice-President of the EC for the European Green Deal Maros Sefcovic and European Commissioner for Trade Valdis Dombrovskis, Julius requested that the EC extend the deadline for questionnaire submissions from Jan. 10.
He said the Jan. 10 deadline was too restrictive due to the recent holiday season and requested the EC extend the deadline to allow sufficient time for all interested parties to participate fully in the review process.
“Many of our members and stakeholders face significant challenges in gathering the necessary data and preparing their submissions within the given time frame,” he wrote.
Julius also asked for harmonization of customs rules across member states, saying that divergences in customs rules across member states often resulted in inconsistent and incorrect declarations, creating unnecessary administrative burdens and an unequal treatment of European importers.
“We propose that the review addresses the need for harmonized customs procedures across the EU to ensure fair and consistent application of the measures, in order to assess in this respect a level playing field,” he wrote.
EUROMETAL also requested clarification on the definition of EU users within the context of the safeguard measures review, asking whether it included the distribution segment, such as service centres, stockholders, and traders.
Julius said the sector played a pivotal role in supplying 60% of all steel products to end-users and a clear and consistent definition was “crucial to ensure that all relevant stakeholders are appropriately recognized and accounted for in the review process.”
He told the commissioners that EUROMETAL also supported Eurofer’s proposal for the EC to organize a Steel Summit, as it would provide an invaluable platform for stakeholders to engage in discussions about the current challenges facing the steel sector.
Julius said the challenges include “those related to the safeguard measures, and to collaboratively identify solutions that serve the interests of the entire steel value chain.”
We are more than happy to actively participate in this initiative, as we firmly believe that interaction with all our stakeholders is crucial to developing sustainable European manufacturing and steel industry supply chains,” he wrote, saying EUROMETAL remained committed to contributing to essential dialogues.
He said these considerations were vital for ensuring that the revised safeguard measures remain well-aligned with market realities and the interests of all stakeholders in the EU steel sector.
“EUROMETAL stands ready to contribute to the ongoing discussions and provide further evidence or insights,” Julius wrote.
As of Jan. 10, Vietnam, Japan and Taiwan have exhausted the EU’s tariff-rate quota (TRQ) system for hot-rolled coil imports, as per official EC data.
In contrast, 38% of Egypt’s quota is still available. Meanwhile, countries like Australia, Switzerland, the US, Canada, and Libya have not yet utilized their first-quarter quotas, maintaining 100% availability.
Platts, part of S&P Global Commodity Insights, assessed domestic HRC prices in Northern Europe at Eur560/mt ex-works Ruhr Jan. 9, down 19% since the start of 2024.
EU Steel Distribution faces continued weak demand, with upward shift in price expectations
The EU steel and metals distribution sector remains cautious as we approach the end of 2024.
While current activity levels remain stable, future activity is expected to weaken. Distributors are maintaining a conservative approach to inventory, aligning stock levels with anticipated market softness. However, there’s a notable shift in price expectations, with some respondents foreseeing stabilization or slight increases, suggesting that price pressures might ease as the market recalibrates.
Overall, while the industry braces for subdued demand, there is a glimmer of potential price resilience, which could provide stability as distributors navigate this challenging period.
Assessment of Current Activity
Responses are consistent with previous months, possibly reflecting a stabilization or slight dip in current activity levels. The general trend remains below the neutral line, suggesting that the sector is still operating at a cautious activity level, with no significant improvement.
Future Activity Forecast
Downward trend continues: October responses show a continuation of the pessimistic outlook for future activity. Most responses are positioned below the neutral line, following the downward trend observed in recent months.
Weak expectations for the coming months: The future activity sentiment indicates an expected decrease as we move toward the end of 2024. This sustained downward trend suggests that distributors anticipate a prolonged period of weak demand.
Stock Position Forecast
Steady or slight decrease: Stock positions for October remain stable, with only slight variations from previous months, indicating a conservative approach to stock management.
No aggressive restocking: Respondents show no intentions of significantly increasing stock levels, reflecting a focus on maintaining or slightly reducing inventories in anticipation of lower demand. This pattern underscores a cautious stance, as distributors are reluctant to commit to higher stock levels amid uncertain market conditions.
Price Development Expectations
Shift in price sentiment: October’s responses indicate an upward shift in price expectations, with answers positioned closer to the neutral line and slightly above it.
Potential stabilization or increase: Unlike previous months, where sentiment leaned toward declining prices, October responses show a more balanced or slightly positive outlook on price developments, possibly due to market adjustments or expectations of supply limitations. This change may reflect a belief that prices could stabilize or increase slightly as distributors adapt to market realities and adjust supply strategies accordingly.
This analysis is based on the EUROMETAL Sentiment Survey, reflecting the opinions of 251 participants. Interested in our Sentiment Tool? Contact us.
Market unlikely to recover before H2 2025
Panelists at Kallanish Flat Steel 2024 in Istanbul expressed mostly a bearish outlook for the market until at least the second half of next year.
Tayfun İşeri, chairman of Turkey’s Flat Steel Product Exporters, Importers and Manufacturers Association (YİSAD), emphasised he is an optimist but is pessimistic about the market outlook for the first time.
The steel industry has been “hectic” for the past two years, he noted at last week’s event. Global trade has regionalised and the WTO has lost its respect. The Russia-Ukraine war, the Turkey earthquake and the Palestine-Israel conflict, as well as high interest rates and inflation have impacted steel demand and will continue to do so. Chinese exports, which will exceed 100 million tonnes before the end of 2024, pose a threat to steel prices and production in 2025, İşeri noted.
Selçuk Yılmaz, speaking at his first conference since becoming Yıldız Demir Çelik general manager last month, said Turkey’s imposition of a 6.1-43.31% dumping duty on HRC imports from India, China, Japan and Russia has already impacted domestic HRC pricing. Next year, there may be an anti dumping investigation into galvanizing, cold rolled and pre-painted steel imports in Turkey, he added. Operating profits are decreasing amid high energy costs, while production capacities are rising.
Kallanish Asia editor Tomas Gutierrez stated that Chinese steel demand will fall consistently in the foreseeable future, meaning China will need to export its surplus. Noting that overall fundamentals are weak and the recently announced stimulus packages are insufficient to support the steel industry, Gutierrez pointed out that economic confidence is required to trigger a demand recovery.
Stemcor managing director Dick Sands said construction has been hit by high interest rates, while global sentiment is very negative today. “The only thing that can move mountains is sentiment. We need positive sentiment,” he affirmed. Although wars are having a negative impact on steel demand at present, once they end, this will boost demand.
Trade cases are likely to increase on Chinese material, Sands continued, adding that he is no longer confident China can manage its economy.
GMK Center chief executive Stanislav Zinchenko stated that although he expected 1.4% annual growth next year, which would be good for the European economy, European steel demand is unlikely to improve in the next six months. The market is currently at the bottom of the demand cycle, with demand to return by 2026-2028.
The Indian market has been stagnant for almost a year. “We failed to see the expected infrastructure investment projects after the [Indian] election. The biggest challenge for India is exports which decreased by 50% in the nine months this year, while imports grew 60% … India should decide about protection measures to compensate for export losses and stimulate its local market,” Zinchenko concluded.
EUROMETAL members expect stable steel prices in 4Q
Steel distributors’ association EUROMETAL’s inaugural market sentiment survey shows that members expect fourth-quarter steel prices to remain generally stable, despite below-average activity in the third quarter.
Respondents across different European markets that are exposed to different end-use sectors all agreed that current market activity is below average. Most major markets expect final-quarter activity to remain below average, but the outlook for the UK and Ireland, the Balkans and the Visegrad region is slightly more optimistic, with average or stable activity anticipated. Yet prices in all geographical markets are forecast as stable, except for Iberia, where respondents see higher prices in the fourth quarter.
Most major end-use sectors are likely to remain subdued, with forecasts for continued below-average activity in the automotive, construction, packaging, machinery and white goods segments. Respondents expect activity to tick up to above-average in the tubes and energy sectors from below average at present.
Stock levels going into the fourth quarter appear to be mostly stable, although flat steel service centres report below-average inventories. Perceptions about stocks in Italy, Iberia, the Nordics and Turkey are also down. Stocks in the white goods, automotive and packaging sectors are perceived as being below average and average in all other end-user segments.
By Lora Stoyanova
