This article is part of a series of materials dedicated to the 75th anniversary conference of the EUROMETAL Steel Distribution Association, which will be held on July 2-3, and which discusses the challenges and opportunities of the industry in terms of its policy, trade protection, carbon boundary regulation mechanism, environmentally friendly steel and the changing role of European steel. distribution.
Undoubtedly, the biggest change on the horizon for the European steel industry, and in particular for its distribution sector, is the upcoming final phase of the Carbon Boundary Regulation Mechanism (CBAM), which provides for the payment of carbon duties on imported materials from January.
Most of the dissatisfaction expressed in connection with the 75th anniversary of EUROMETAL was related to these emerging and uncertain obligations under CBAM after the company enters its final phase. Unsurprisingly, distributors were overwhelmingly negative, describing the tool–along with more colorful language – as "a nightmare by nature," "madness," "fiasco," and, most significantly, as "a Molotov cocktail for the entire supply chain."
While many recognized the need for CBAM to ensure that European industry could not bear the burden of global decarbonization alone – and welcomed the last-minute motley amendments such as a simplification package, plans to extend CBAM's authority to processed products, and possible discounts for European exporters - it was stated that certain legislative or reference gaps hinder the development of European industry. preparing the industry for January.
As for manufacturers, this is due to gaps in the tools that can drive carbon leakage. Eurofer CEO Axel Eggert said that more than 70% of the nearly 30 million tons (or 50-65 billion euros) of European steel and steel-containing products are exported to non-EU countries. comparable climate policy.
"CBAM is at a critical stage, and it has the potential to save or destroy industry in Europe," said Dr. Henrik Adam, President of Eurofer. "But it's very easy to see how this pleasant cocktail can become a Molotov cocktail if you overestimate the technical arguments rather than the actions."
For distributors, the lack of clarity about CBAM's financial burden, as well as difficult administrative obligations, can negatively affect their operations and profitability.
"Decarbonization was perceived as a mantra without due consideration for pragmatism and competitiveness," said Antonio Marcegaglia, CEO of Marcegaglia.
