Assofermet calls for protection in the subsequent stages along with guarantees
The Italian steel trade association Assofermet calls for a significant simplification of the work of the European bureaucracy and calls on the EU to immediately supplement the CBAM rules, steel smelting and casting and new protection rules with tools to preserve the competitiveness and production capacities of steel processing companies and end-user companies, Kallanish notes.
The manufacturing sector needs guarantees of adequate supply options and, above all, a serious assessment of the impact of quotas, duties and CBAM on the entire industrial supply chain, the association said in a note.
It also notes that in the current conditions of serious instability and ongoing tensions, the fragile competitiveness of the EU manufacturing industry cannot be sacrificed in the name of a protection strategy designed exclusively for the extractive segment of the industry.
"The main problem is the overall balance of measures taken by the EU. A policy that protects only primary production without providing equivalent support to companies that process and use this steel can lead to distorting and constraining effects," the memo says.
Downstream companies, including processors, end users, distributors and traders, as well as the metalworking industry, are facing disproportionately rising raw material costs, a gradual reduction in the search for options, and an increasing administrative and bureaucratic burden that is becoming increasingly difficult to understand.
"If the EU loses market share in global manufacturing markets and if the continent's competitiveness declines further due to the accumulation of severe regulatory constraints, steel producers themselves will inevitably suffer in the medium and long term, as orders from their own customers inexorably decline, leading to another reduction in steel consumption and demand." - warns Assofermet.
In the segment of stationary service centers, there is growing concern about the ability of European manufacturers to absorb rising prices.
Last year, the association asked the European Commission to review the existing CBAM system, warning that this mechanism could lead to serious disruptions to the EU industry.
In a letter addressed to Stefan Sedjourné, Vice President of the European Commission for Welfare and Industrial Strategy, and Maros Sefcovic, Commissioner for Trade and Economic Security, the association requested a temporary exemption from the purchase of CBAM certificates for all imported steel cleared from January 1, 2026, until five months after publication.