EU calls for extending steel protection to steel derivatives
The European Commission is being urged to make a clear commitment to extend its trade restrictions to steel derivatives and to begin cooperation with refineries, steel companies, refiners and associations, including Eurofer, ArcelorMittal, Thyssenkrupp, Malvestiti Group, Trancerie Emiliane and others, according to a joint statement obtained by Kallanish.
The purpose of the joint competition is to ensure the protection of strategically important products made of electrical steel, such as transformer plates and stator/rotor cores for generators and electric motors. The focus is also on key components of the electrical industry, such as generators, transformers, and motors that are used in renewable energy sources, electric power distribution, and e-mobility.
These products are currently not covered by trade agreements, which creates a gap in the protection of the entire value chain. Stakeholders state that the result of the Commission's work should be an initial legislative proposal within six months after the steel measures come into force.
The European steel and electrical products value chain is at a critical juncture as deindustrialization accelerates and excess global production capacity drives down prices. Organizations note that increasing imports - from coils to plates, rotor and stator cores, and transformer parts - are reducing utilization and profitability across the sector.
Against this background, the European Commission's October 7 proposal on a trade regime is seen as a necessary intervention to restore fair competition. The companies in the steel chain insist on taking measures by early 2026 so that they can enter into force on April 1 "to stabilize the market and restore fair competition."
While the proposal aims to eliminate distortions affecting 28 categories of steel products, the pressure is rapidly spreading to steel derivatives and subsequent components used in energy conversion technologies and electric motors.
"Protecting steel products alone is not enough. This may inadvertently lead to increased unfair competition and circumvention in the processing industries, leading to the destruction of the very production value chain that they seek to preserve. That is why we strongly support a coordinated two-step approach to strengthening Europe's entire industrial ecosystem," the statement concluded.
However, experts in the field