EU announces funding for steel, coal innovation
The European Commission has announced a €175 million ($182m) budget for the 2025 Research Fund for Coal and Steel (RFCS), aiming to advance innovation and facilitate the transition in these sectors.
The funding includes two major calls, or “big tickets,” set to launch in February. The steel sector will receive €100m for projects focused on breakthrough technologies, such as carbon capture, storage, and usage, process intensification, and CO2-neutral iron ore reduction.
Meanwhile, €35m will support coal sector initiatives, including the re-purposing of closed mines, waste treatment, methane monitoring, and the recycling of critical raw materials.
An additional €40m annual call covering both sectors will open in June. Beneficiaries of the funding will include universities, research centres, and private companies.
The RFCS programme aligns with the European Green Deal’s goal of achieving EU climate neutrality by 2050, emphasising clean technologies and just transition in coal mining regions, Kallanish notes.
Elina Virchenko UAE
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.
EUROMETAL submission to the European Commission: Key Updates
On 10 January 2025, EUROMETAL officially submitted its response to the European Commission as part of the ongoing functional review of the EU Safeguard Measures on Steel Imports.
This submission reflects EUROMETAL’s commitment to representing the interests of members and stakeholders in shaping policies that impact the European steel industry.
In response, the European Commission has provided important updates and clarifications on the review process:
Deadline Extension Granted
EUROMETAL raised concerns about the tight deadline for submitting questionnaires, originally set for 10 January 2025, considering the holiday season and its impact on data collection efforts. The European Commission granted a three-day extension, moving the submission deadline to 13 January 2025. This extension, while limited, provides stakeholders additional time to prepare and submit their responses. EUROMETAL encourages all members and steel users to utilize this opportunity to ensure their voices are heard.
Clarification on “Union Users”
In response to EUROMETAL’s request for clarification, the European Commission provided the following definitions:
Union Users: these are companies that use the steel products subject to the safeguard measures in their downstream production processes.
Traders, Service Centres, and Stockholders fall under the category “Interested Parties” due to their objective link with the products under investigation.
The Commission has invited all interested parties, including traders, service centers, and stockholders, to register on TRON.tdi and submit their views in the form of written submissions as outlined in Section 4.3 of the Notice of Initiation.
EUROMETAL continues to advocate for its members and the broader Steel Distribution industry. In our submission, we highlighted several key priorities:
- Extension of the Questionnaire Submission Deadline.
- Harmonization of Customs Rules Across Member States.
- Clarification on the Definition of Union Users and Interested Parties.
- Support for the Proposal to Organize a Steel Summit.
These priorities underline the critical role of steel distribution in safeguarding European manufacturing and ensuring sustainable steel supply chains.
European Commission bows to industry pressure, starts steel safeguards review; tougher restrictions likely
A request to initiate the review was submitted by 13 EU member states on November 29.
“The request contains evidence of a change of circumstances since the last review of the measures. In particular, the request contains information regarding the contraction in European Union demand for steel, resulting in widening gaps with the current level of duty-free quota volumes,” the notice said. “Moreover, [the surge in] China’s steel exports to major regions has pushed exports from other markets to the EU. According to the request, this calls for a reassessment of the allocation and management of the tariff-rate quotas.”
The review process will be accelerated, the Commission said, and is expected conclude by March 31, 2025, with any adjustments to the current measures expected to come into force the following month.
Industry concerns include the allocation and management of tariff-rate quotas; the crowding out of traditional trade flows; getting an updated list of developing WTO member countries excluded from the scope of the measures based on their most recent level of imports for 2024; the level of annual liberalisation of the quotas; and any other changing circumstances that could require an adjustment to the level or allocation of tariff-rate quotas.
“In any case, with all the trade measures in place we can expect increased reliance on domestically produced steel in the EU,” a distributor in the Benelux region told Fastmarkets.
Wider market
European steel safeguard measures have been in place since July 2018.
The latest review of the safeguard measures only came into force on July 1, 2024, but has already had a substantial effect on the market due to a proposed 15% cap per country over the tariff rate quota (TRQ) volume initially available in each quarter for HRC and wire rod in particular.
In addition, in August 2024 the Commission launched an anti-dumping probe into HRC imports from Egypt, India, Japan and Vietnam.
Since then, market participants have noticed that Asian suppliers have become less active and said that “importing steel has become like a gambling” now.
“These trade barriers create additional uncertainty which is not encouraging demand [for imported steel], so we can expect more demand for EU-made steel and it’s safer [to book European steel],” a trading source said.
“It’s an issue for import steel buyers in Europe that they don’t know the potential extra costs they might be facing by the time [any steel arrives],” a second trader said.
In January-September 2024, carbon steel imports to the EU amounted to 20 million tonnes. For the whole of 2023, steel imports were 24.8 million tonnes.
Sources said that imports account for up to 30% of EU steel consumption.
Global steel overcapacity, particularly in regions such as China and the US – which benefit from more favorable production conditions- was undermining the viability of the EU steel sector, producer source told Fastmarkets.
“China is massively exporting steel globally at dumped prices, which is, in turn, severely depressing prices worldwide. On top of this, these excessive exports result in trade flow diversions to the EU market,” a producer in northern Europe said.
World crude steelmaking capacity in 2023 was estimated at 2.439 billion tonnes per year, exceeding production by 552 million tpy, according to the Organisation for Economic Co-operation and Development (OECD).
In 2023, steel output among the EU’s 27 member states fell to 126.30 million tonnes, down from 136.30 million tonnes in 2022 and down from 152.60 million tonnes in 2021, according to data from the World Steel Association.
EU Commission initiates review of EU Safeguard Measures on Steel Imports
European Commission has initiated a functional review of the EU Safeguard measures on steel imports. This decision follows a request from 13 EU Member States, who provided evidence pointing to a contraction in Union demand for steel and widening gaps between the current level of duty-free quota volumes and actual demand.
Additionally, the surge in China’s steel exports to major regions has intensified global trade flows, leading to increased steel exports from other markets into the EU.
The request calls for a reassessment of the allocation and management of the tariff-rate quotas. Notably, the Commission has indicated that the review process will be accelerated, with any adjustments to the current regime becoming applicable as of 1 April 2025.
Questionnaire for EU Steel Users:
European Commission to consider changes to CBAM to help exporters
Development of relevant proposals is expected in 2026
The European Commission will explore options to help European industries affected by carbon border adjustment mechanism (CBAM), such as the steel and aluminum sectors. This was announced by the Director-General for Taxation and Customs Affairs of the European Commission Gerasimos Thomas, Bloomberg reports.
According to him, this will take place as part of the revision of the mechanism, which will be held next year. Based on the results of the discussion, the relevant proposals will be formed and presented in 2026. According to the official, the EU will leave no stone unturned to help the bloc’s exporters cope with the side effects of CBAM.
EU exporters complain that their products will become more expensive as emissions costs increase.
As Thomas noted in an interview at the COP29 climate conference in Baku, maintaining the competitiveness of European industry during the energy transition is a key priority of the second term of EC President Ursula von der Leyen. According to him, there are several ideas, and nothing is ruled out. Thomas also added that the EU realizes that the problem will have to be solved earlier than expected.
Previous attempts by European lawmakers to create a mechanism to help EU exporters were rejected because of concerns that it could violate WTO rules. The CBA has already been criticized by the bloc’s trading partners, such as Brazil and China. In addition, Thomas noted, the EU is waiting to see how the new US administration will react to the mechanism.
The United States has been calling for the development of its own CBAM analog: recently, both Democrats and Republicans have put forward relevant proposals.
Toward the end of 2025, the EU will announce what steps in the US and other countries can be considered equivalent to the European mechanism in terms of climate impact. The Director-General for Taxation and Customs Affairs of the European Commission emphasized that the EU will not allow circumvention of regulation, but there will be a system that encourages and incentivizes countries that take measures to minimize the environmental impact of carbon-intensive sectors covered by the CBA.
Source: gmk.center
European Commission study on the potential extension of the scope of the CBAM to downstream products
European Commission Directorate-General for Taxation and Customs Union (TAXUD) is conducting a Study on a potential CBAM scope extension to downstream products.
The objective of this study is to assess the feasibility of extending the scope of the CBAM to products further down the value chain (downstream products) of the goods that are currently listed in Annex I of the CBAM Regulation (upstream CBAM basic goods).
The purpose of including downstream products is to mitigate the risk of carbon leakage of upstream CBAM basic goods as well as the downstream products.
As part of the study, they are carrying out a stakeholder survey. The aim of this survey is to gather both evidence and the views of relevant stakeholders on the major concerns, areas of consensus or points of contention as regards a CBAM scope extension to downstream products.
Particularly, input is sought on the administrative burden and costs importers of downstream products may face in complying with the CBAM if the scope were to be extended to downstream products.
The survey will be open from today until October 25th, 2024.
You can find the link to the survey here: CBAMScopeDownstream2024
Password: CB4M_d0wnstream
More background information n the objectives of the study can be found in the introductory section of the survey.
EU introduces registration of all imports under investigation
The European Commission has decided to register all imports of products under anti-dumping or anti-subsidy investigations, including ongoing investigations. This will enable the retroactive collection of anti-dumping and countervailing duties if the legal conditions are met.
Reports suggest that the Commission may implement retroactive duties in its anti-dumping case, launched last month, against hot rolled coil imports from Egypt, India, Japan and Vietnam, Kallanish notes.
Retroactive collection is not automatic. That decision is taken only at the definitive stage of each investigation, the Commission points out.
The registration of imports is also designed to prevent sharp increases in imports of products under investigation ahead of the imposition of measures. It will simplify procedures and alleviate the burden placed on industry, while also providing the Commission with precise and accurate information about the source and quantities of imports of a product under investigation, as well as broader market developments, the Commission observes.
Until now, imports were usually registered only upon a justified request from EU industry. The latest decision is aimed at stepping up the use of trade defence instruments.
The registration will be carried out by Member-State customs authorities as directed by the European Commission via individual Implementing Regulations.
In an unprecedented move, the EU initiated the HRC AD case despite all four origins already being subject to EU safeguard quotas, with Egypt, Japan and Vietnam effectively having their quotas restricted only a month earlier. EU steel industry representatives are concerned about the survival of production in the bloc amid high import penetration and uncompetitive production costs.
Adam Smith Poland
European Commission discloses draft duties on China-made battery electric vehicle imports
The European Commission (EC) unveiled on Tuesday its draft decision on definitive countervailing duties on battery electric vehicle (BEV) imports from China, Kallanish reports.
Carmakers received the proposed additional tariffs they will be subject to, and now have 10 days to provide comments. Interested parties can also request hearings with the EC “as soon as possible.”
The decision follows an anti-subsidy investigation officially started on 4 October 2023. Temporary duties, on top of the existing 10% import tariff, entered into force on 5 July 2024. If approved in an upcoming vote by member states, definitive countervailing duties will be imposed on 5 November for a five-year period.
Based on “substantiated comments” received from carmakers on the provisional measures, the EC has slightly adjusted the proposed rates downwards. They range from 17% to 36.3%, instead of the original maximum rate of 38.1%.
However, US EV maker Tesla has received a much lower rate than peers. This “individual duty rate” of 9% was granted as an exporter from China. This means Tesla’s BEV models shipped from its Shanghai gigafactory will only be subject to a total of 19% import duties “at this stage.”
In comparison, BYD vehicles are subject to 27%. Other cooperating companies, which the EC has not publicly disclosed, will face total tariffs of 31.3%. “Non-cooperating” companies such as SAIC, the parent company of MG Motors, are facing the harshest combined rate of 46.3%.
China Chamber of Commerce to the EU (CCCEU) expressed its “strong dissatisfaction and firm opposition to the EC’s protectionist approach.” The group argues the development of the European EV industry, along with the EC’s own report, “shows that there is no sufficient evidence to demonstrate that China’s BEVs cause substantial material injury in the EU market.”
“The EC’s unfair use of trade tools to hinder free trade in electric vehicles, along with this protectionist approach, will ultimately weaken the resilience of the European electric vehicle industry, disrupt the level playing field, and undermine the EU’s own green transition,” it adds.
The move will also exacerbate trade tensions between China and the EU, but the EC doesn’t see it impacting the ongoing procedures in the World Trade Organisation (WTO). Beijing says the EU has not followed WTO trade rules and has initiated a dispute consultation.