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The EU steel industry warns Brussels about the growing gap in competitiveness in the secondary market

The EU steel industry warns Brussels about the growing gap in competitiveness in the secondary market

European distributors, processors and steel producers have increased pressure on EU policy makers to address what they see as a growing competitive imbalance between steel produced in or imported into the European Union and metal-intensive industrial goods entering the bloc from third countries.

More than 200 representatives of the European steel, metallurgy, processing, logistics and manufacturing sectors gathered in Brussels on September 7 to participate in the European Convoy for Industrial Competitiveness, organized by EUROMETAL.

As part of the initiative, 15 trucks and ten symbolic industrial coffins were delivered to the European Quarter, but the idea of the industry went beyond the demonstration itself: EU trade and climate policy carries risks by protecting steel at the border and leaving important links of the subsequent production chain exposed to cheaper technologies. импорт.

According to EUROMETAL, steel produced in Europe or imported directly into the EU is increasingly subject to trade protections, carbon costs, and regulatory requirements, while many finished steel products are manufactured outside the EU. The bloc can still enter the European market without equivalent obligations.

This creates a potential competitive advantage for European steel consumers. Manufacturers within the EU have to face the costs of purchasing steel in accordance with European environmental and regulatory standards, while competing finished products can be produced abroad using steel that does not have comparable costs. The problem is that stricter controls on direct steel imports may reduce rather than eliminate import pressure. Instead of importing steel and processing it in Europe, European buyers could increasingly turn to finished products. components, equipment, structures, and other steel-containing products manufactured outside ЕС.

EUROMETAL believes that this creates a growing risk of carbon leakage into subsequent production, which could lead to a shift in manufacturing investments and jobs. beyond Europe.

This problem has already been recognized at the EU level. In December 2025, the European Commission proposed to expand CBAM from 2028 by about 180 additional steel and processing products with high aluminum content, including machinery and equipment. The Council approved its position on the proposal in June 2026, while the European Parliament's Environment Committee subsequently supported the expansion of steel and aluminum processing activities.

However, the timing and scope of these measures remain critical for EUROMETAL. The Federation calls for fair competition across the entire steel value chain, better protection against carbon leakage, improved traceability and provenance requirements, and the inclusion of steel-based manufactured goods in EU trade and climate instruments, where appropriate.

Alexander M. Julius, President of EUROMETAL, said that Europe cannot achieve its goals in the field of climate, strategic autonomy and economic sustainability as long as it allows its production capacity to weaken. bases..

"Today, too many products requiring large amounts of steel production enter the European market without meeting equivalent trade, carbon and regulatory obligations," Julius said, warning that the imbalance could lead to an outflow of investment from Europe, the relocation of production abroad and the loss of skilled jobs in industry.

The representative of the European Commission was not present at the meeting. The delegation arrived in Berlaymont, EUROMETAL reports. A document outlining the federation's position and calling for action instead was handed over to the Commission's security staff. Later that day, Elena Donazzan, Deputy Chairman of the Committee on Industry, Research and Energy, hosted participants in the European Parliament to discuss industrial competitiveness, investment and the future of Europe's steel sectors.

During the discussion, the main points of the increasingly important task of European industrial policy were highlighted: how to decarbonize and protect domestic steel production without reducing the competitiveness of producers who consume it.

Thus, for Europe's processing industry, the question is not only how much steel should be imported into the EU, but also where the steel consumed by the European economy will eventually be produced and converted into finished products - in Europe or abroad.

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