Steel and Metals Action Plan unveiled

Concrete measures need to follow swiftly to reverse the decline of the sector, re-establish a level playing field with global competitors, and incentivise investment and uptake of green steel in the market.

According to Henrik Adam, president of EUROFER, the Steel and Metals Action Plan sends a clear message that a strong European Union needs a strong European steel industry.

“From addressing unfair trade to closing loopholes in the Carbon Border Adjustment Mechanism to recognising the strategic and environmental value of steel scrap, the Action Plan identifies crucial areas for our sector. Now it’s time to implement meaningful solutions through ambitious measures," Adam said.

The European steel industry has a turnover of around €191 billion and directly employs around 303,000 highly-skilled people, producing on average 140Mt/yr of steel.

Among the most salient issues addressed in the Action Plan are:

• A proposal for a comprehensive and effective post-safeguard trade regime addressing the destructive spill-over effects of global steel excess capacity on the EU market;

• Strengthening the EU’s trade defence toolbox to counter foreign subsidies and dumping;

• Addressing loopholes – including resource shuffling – in the Carbon Border Adjustment Mechanism, extending its scope to downstream products, and proposing a solution to ensure the competitiveness of EU steel exports;

• Recognising steel scrap as a strategic secondary raw material and emphasising its critical role for circularity in the EU;

• Stimulating investment in decarbonisation by creating lead markets for low-carbon products.

“Despite the positive proposals from the Commission, energy remains the elephant in the room. High energy prices affect not only steel and metals production, but they are dragging down entire European industrial value chains. Further work to reduce energy costs is crucial”, said Dr Adam.

“We are grateful that the Commission has clearly recognised the strategic importance of the European steel industry to the EU’s sovereignty, security, and competitiveness. We look forward to continuing to work with the Commission as it puts forward and implements the legislation that will determine the future of our industry”, concluded Dr Adam.