EUROMETAL President Alexander M. Julius said at the Steel Networking Summit 2026 that the gap between EU measures on steel imports and trading conditions for finished goods containing steel is undermining the competitiveness of European producers. He said a level playing field must be ensured at every stage of the steel production chain.
Speaking at the Steel Networking Summit 2026, organized in Istanbul by the Turkish Steel Exporters’ Association (ÇİB), Julius discussed trade measures in the European steel market, imports of steel-containing products and the impact of the Carbon Border Adjustment Mechanism (CBAM) on manufacturing.
According to Julius, over the past 25 years the EU has imposed anti-dumping measures, countervailing duties and safeguards on steel imports. Meanwhile, industries that use steel in manufacturing have not received comparable protection from imports of finished goods. He said this difference in conditions for steel producers and companies that use steel should be taken into account when assessing the decline in steel demand in Europe.
Gap in protection for steel and steel-containing products
Julius’s presentation said the EU’s duty-free steel import quota is 18.3 million tonnes and covers 30 product categories. From July 1, 2026, imports above the quota will be subject to a 50% duty. Other steel market protection tools cited included anti-dumping duties and countervailing measures against subsidies.
For many industrial goods containing steel, standard Most-Favoured-Nation (MFN) duty rates range from 0% to 2.7%. Such products are not subject to general safeguard quotas comparable to those on steel, and trade measures apply only to specific goods.
The presentation also noted that, at the end of 2025, around one-third of the 232 trade defence measures in force in the EU concerned iron and steel.
Julius said that protection measures and carbon costs on steel inputs are rising, while European companies that use steel compete with finished products imported at low tariff rates. He said this is increasing pressure on steel-consuming industries.
Industrial weakness also affects steel demand
Julius stressed the importance of preserving the competitiveness of steel-buying manufacturers. Protecting steelmaking alone does not solve problems arising further down the production chain, he said.
Higher steel prices and carbon costs are intended to encourage investment in low-carbon production, Julius noted. However, if competitive conditions with imported steel-containing products are not balanced, this will place an additional burden on European industry.
He added that weak demand for steel in Europe cannot be considered separately from the loss of market share by industries that use it.
Goods previously sent to the US and Canada are being redirected to the EU
According to Julius, US and Canadian trade measures affect not only direct steel trade but also shipments of goods containing steel. Products whose access to these markets is restricted are being redirected to other countries, increasing import pressure on the EU.
According to an estimate cited in the presentation, based on data from EUROMETAL and Metals Consulting International, some trade flows previously destined for the US and Canada—accounting for more than 15% of global trade in steel derivative products—have been redirected to the EU.
The presentation mentioned Section 232 measures and melt-and-pour requirements in the US market, as well as corresponding Canadian customs rules. The document noted that the EU’s lower trade barriers for goods containing steel increase the risk of trade diversion and dumping.
Carbon costs undermine export competitiveness
Julius said CBAM is becoming an additional cost for manufacturers that use steel: European companies have to factor carbon charges and higher raw material costs resulting from trade measures into their product prices.
According to him, it is difficult for these companies to compete in third-country markets where comparable costs do not apply. Julius stressed that the issue concerns not only imports into the EU but also Europe’s export opportunities.
According to the latest data available to EUROMETAL, no mechanism to compensate for carbon costs on exports is planned, Julius said. He added that EUROMETAL had proposed compensating for these costs along lines similar to the refund of value-added tax (VAT) on exports.
Criticism of the CBAM calculation methodology
The presentation also examined technical aspects of the financial phase of CBAM, which began on January 1, 2026. The section, prepared using data from Macrometal, analyzed weighted average emissions calculated based on current production methods, as well as benchmarks used to determine the equivalent of free allowances.
The presentation criticized increases in default emissions values for certain countries without clear justification. It also said some definitions of production methods do not accurately reflect actual production conditions.
Other issues raised included an additional 10% uplift to values for certain countries in 2026 and uncertainty over emissions monitoring methodologies.
EUROMETAL appeal backed by more than 500 organizations
Julius said EUROMETAL issued an appeal in April to protect the steel production chain. The initiative was backed by more than 500 companies, national federations and industry organizations.
According to him, the aim of the initiative is to inform decision-makers in Brussels and at the national level about the pressure caused by imports of goods containing steel. Julius added that, at the request of policymakers, EUROMETAL is collecting data to demonstrate the growth in imports and their impact on production.
Julius highlighted differences in the trends for imports of finished steel products and goods containing steel. Recently, EUROMETAL has recorded quarterly growth of around 3% in imports of the latter category, he said.
Turkey’s hot-rolled coil quota also discussed
In his remarks, Julius also addressed Turkish hot-rolled coil (HRC) exports to the EU and considered how the new quota system affects trade flows and importers’ costs.
According to the presentation, Turkey’s country-specific HRC quota was 161,000 tonnes in each of the third and fourth quarters of 2026. An additional quota pool of 121,000 tonnes was available in each of those periods for countries covered by free trade agreements.
In July and August, HRC imports from Turkey into the EU totaled 289,000 tonnes. According to the data presented, this was about 7,000 tonnes above the combined volume of the country-specific quota and the additional pool.
The presentation listed Turkey among the countries with access to the additional pool in the third quarter, and Turkey and India in the fourth quarter. Julius noted that uncertainty over quota availability affects importers’ decisions and competition between countries.
He also said that Turkey has expanded its production capacity and improved product quality in recent years, enabling it to serve industries such as automotive more extensively. This should be taken into account when assessing trade relations with Europe, he said.
Julius added that the ability to pass rising costs on to end consumers and the sustainability of current price levels remain important issues.
Author: SteelRadar editorial team
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