EUROMETAL, a trade association representing steel distributors, traders and service centers in the EU, has called on the European Commission to take decisive steps to address the growing threat posed by imported steel derivatives and gaps in EU trade protection legislation.
In a letter sent to the European Commission late on October 2, EUROMETAL pointed to urgent problems, including circumvention of existing carbon emissions regulations for the production of finished products requiring large amounts of steel production, a long delay in finalizing CBAM control values, and the need to take immediate action on import quotas to protect the European market. steel.-established production ecosystem.
The EUROMETAL letter highlights that the uncontrolled growth in the production of metal derivatives, which are industrial commodities heavily dependent on steel, is rapidly undermining EU industry. These products often bypass existing trade protection Instruments (TDIs) and CBAM measures by entering the market at low prices with unaccounted for carbon dioxide emissions.
The association warns that this loophole leads to unfair competition, carbon leakage, undermines the EU's efforts in the field of closed-loop economics and threatens more than 3 million industrial jobs.
The letter provides data on import growth from 2010 to 2024, indicating an increase in imports of metal derivatives by more than 200%. EUROMETAL emphasizes the need to directly extend CBAM and TDIs to these steel-containing derivatives, based on the steel content and strategic importance to the industry, in order to "close loopholes in legislation" and restore a level playing field for European manufacturers.
Delay in CBAM assessment
In addition, EUROMETAL criticized the commission's postponement of the final determination of the base values of CBAM to the beginning of 2026. Alexander Julius, president of the association, described the delay as causing "uncertainty and cost uncertainty," which led to fluctuations and stagnation in contract negotiations throughout the steel supply chain.
Industry representatives have warned that unclear CBAM rules are endangering the EU's manufacturing base by making import procurement decisions more difficult, especially against the backdrop of volatile global carbon pricing inequality.
EUROMETAL's concerns coincide with the legislative measure proposed by the European Commission to halve steel import quotas and raise tariffs on volumes exceeding quotas to 50%. The move is aimed at repeating the US and Canadian tariff measures and helping the steel industry.
