Steel distributors and service centers took part in an action in Brussels to draw attention to increased competition from imports of steel products intended for further processing.
In June, the European Commission proposed to expand the CBAM mechanism to about 180 additional types of steel and aluminum products from 2028. However, more than 200 representatives from the entire steel supply chain in the EU joined the European Conference on Industrial Competitiveness, organized by Eurometal, on September 7 to call for broader support measures.
The action took place just a few days before a key vote on the future coverage of CBAM. On September 15, the European Parliament supported a significant expansion of the mechanism, which may affect more than 400 types of deep-processed products. Now this issue will be discussed at the negotiations between the Parliament and the EU countries.
Eurometal believes that the current EU trade and climate policy protects European steel producers from competition abroad, but it does not provide comparable protection to other companies in the supply chain that face imports of finished products. Neither CBAM nor tariff quotas for steel apply to such goods yet.
Current trade restrictions undermine the work of processing enterprises.
According to Eurometal, strict restrictions on steel imports do not eliminate, but only transfer the pressure of competition, weakening the position of the European steel supply chain downstream. The association also warns that this could lead to carbon leakage: steel and technologies from countries where emissions may be higher than in the European Union will be used to produce goods imported into the EU.
MEPS respondents increasingly note an increase in the supply of slightly modified steel products that enter the EU bypassing existing trade protection measures. This has increased competition between European manufacturers and service centers, which are forced to work with low prices. At the same time, resales continue against the backdrop of rising steel prices in the EU, which occurred after new duties significantly reduced access to imports and increased the cost of raw materials.
From January to September, the average price of a hot-rolled roll in Europe increased by more than 16%, as buyers increasingly switched to purchases from local manufacturers. However, a study conducted this month indicates high inventories and weak demand, which may restrain further price increases in the coming months.
Large distributors and service centers have more opportunities to operate in the complex EU regulations governing steel imports than small independent companies. The presence of warehouses in ports allows them to register