Latest News

European steelmakers comment on EU Steel Action Plan

European steelmakers comment on EU Steel Action Plan

The European Commission announced a plan of action on Wednesday to improve the competitiveness of Europe's steel industry and protect it from U.S. steel and aluminum tariffs. This prompted reactions from industrialists, analysts and think tanks.

The EU's Clean Industrial Deal includes a Steel and Metals Action Plan, which aims to revitalize its industries so that they can compete with their Chinese and U.S. competitors.

Steelmakers in Europe, who have complained for years about the cheap imports from China, now warn of a possible influx of steel surplus into the region due to the U.S. tariffs.

REACTIONS TO EU'S "STEEL ACTION PLANS"

STEELMAKER ARCELOMITTAL

AdityaMittal, CEO of the group, said: "We are encouraged by this direction as outlined in today's Steel and Metals Action Plan."

"Details published by the Steel and Metals Action Plan demonstrate that they understand the urgent situation and are prepared to tackle some critical structural issues including trade defense, loopholes within the Carbon Border Adjustment Mechanism and the lack regulation to drive the demand for low carbon steel." It is now necessary to take rapid action to stop unfair trade, resource dumping and unfair trade.

"It is also important to address the high energy prices which makes it difficult for industry to progress with significant decarbonization project."

THYSSENKRUPP STEEL GERMANY:

The Steel Action Plan is a major step in ensuring the competitiveness of the European Steel Industry and its decarbonization.

"It is noteworthy that the European Steel Industry is given a clear priority for trade protection. This is vital to ensuring its competitiveness."

Effective protection is necessary to protect jobs and level the playing field in the face of global excess capacity and unfair trade practices.

APERAM LUXEMBOURG BASED STEEL GROUP

"Aperam supports any long-term initiative that will ensure robust protection of the EU's Steel Sector against the negative impact of excess steel production in Asia after the current safeguard measures expire on June 20, 2026."

The key issue is how the European Commission will turn this high-level plan of action into concrete legal actions: urgent action is required and so proposed measures must quickly and effectively be implemented.

"We believe that, in particular, trade defense can and should be implemented now, without waiting for the future post-safeguards instruments that will enter into force on July 2026."

FINNISH STAINLESS STEELMAKER OUTOKUMPU:

Outokumpu is happy that the European Commission has recognized steel as one of Europe’s key industries, and is taking action to improve its competitiveness.

The Steel & Metals Action Plan clearly identifies challenges facing the European steel industry, but there are still no solutions for some of these challenges.

"The industry is still threatened by global excess capacity and global distortions from China, and other countries." Outokumpu stated that these challenges must be addressed with more assertive measures, including the replacement of current safeguards by more effective ones from July 2026.

NORWEGIAN ALUMINIUM HYDRO PRODUCER:

With the increasing tariffs on aluminum, there's a risk that Europe could become a dump for producers of aluminium looking for new markets. It could lead to the EU implementing safety measures for aluminum."

Norway is a major supplier of raw materials for European industry. It produces about 40% of the aluminum needed by the EU.

EUROPEAN STEAM ASSOCIATION EUROFER

"With today's Steel and Metals Action Plan the European Commission sends a clear signal: a stronger European Union requires a stronger European steel industry", Dr Henrik Adam said, President of the European Steel Association.

The Action Plan highlights key areas of concern for our industry, from addressing unfair trade and closing loopholes within the Carbon Border Adjustment mechanism to recognising steel scrap's strategic and environmental value. It's now time to implement real solutions by taking ambitious measures.

"Despite positive proposals by the Commission, the elephant in room remains energy. The high energy prices are not just affecting steel and metals, but also dragging down the entire European industrial value chain. "It is vital to continue working on reducing energy costs."

MAXIME KOGGE IS AN ANALYST WITH ODDO BHF

After a disappointing result from the safeguard review, published last week, it is encouraging to observe the EU going further to tackle import pressure by introducing a melt and pour rule and committing itself to replace the safeguard with another similar mechanism after 2026. This is despite WTO rules theoretically preventing such a scheme.

The proposed changes to CBAM is also positive, as the Commission appears to be intent on addressing the structural flaws in the existing mechanism. "However the concrete actions won't be announced until 2025, and the implementation is in large part in the hands the member states who may have other priorities at the moment." (Reporting and editing by Alexandra Hudson, with additional reporting by Eric Onstad. Pratima Deai, Julia Payne, Philip Blenkinsop and Christoph Steitz.

(source: Reuters)