Joint Statement: New Steel Safeguards: A Blow To Europe’s Industrial Competitiveness
Our associations are concerned about the negative effects on Europe’s downstream manufacturing
industries that can be expected from the European Commission’s proposal for continued
protection of the EU steel market.
We understand and support the need to level the playing field for the European steel sector and
address global overcapacities. However, we believe that the parameters as proposed by the
Commission go too far in ring-fencing the European market. A better and fairer balance must be
struck between the needs of European producers on the one hand, and users of steel on the other.
We foresee the following impacts resulting from the measure:
- The proposal almost halves the overall import quota volume and doubles the out-of-quota
tariff to 50%. As more imports will fall outside the quotas, our industries would have to
shoulder between 5 and 9 billion EUR a year in extra tariff costs, assuming that imports
stay at the same level as in 2024. - The Commission foresees a 3.25% increase in average EU steel prices as a result of the
measure3. This is already significant, but it is a minimal assumption, as in some steel
categories much higher price increases of up to 30% can be expected. This means that not
only importers, but also companies that rely on EU steel will see their European and
international competitiveness deteriorate. - The introduction of the “melt and pour” rule will greatly increase the administrative burden
for steel users, penalising SMEs in particular. Obtaining origin information for low-value consignments will be practically impossible. Such a burdensome rule needs to be
implemented in a much more careful and practical way and phased in within realistic
timelines. - Finally, the proposal will make it much harder for our industries to source specialised,
high-quality steel inputs that are needed for complex industrial applications. Such
products are often manufactured by only a handful of suppliers worldwide and not in
sufficient quantities in Europe.
These impacts are in addition to the combined effect of other measures such as CBAM and the
phaseout of free ETS allowances. Together, they will raise the cost of both EU and imported steel
and have a cumulative impact on the competitiveness of European downstream industries.
Also, the proposal affects close trade partners of the EU that do not contribute to global
overcapacity. Rather, they are key suppliers of high-quality, sustainable and specialised steel
products that are needed for high-end industrial applications, with closely integrated value chains
with the EU. Close EU trade partners such as Switzerland should therefore be excluded from the
scope of the measure.
In conclusion, if adopted in its current form, the measure threatens to exert a negative impact
on Europe’s steel users. We urge EU policymakers to ensure a more careful and balanced
approach in the legislative process to adopt the measure, which must take into account and
adequately reflect the significant concerns and challenges faced by European steel users.