EUROMETAL: ‘Shortages and skyrocketing prices’ from CBAM, new steel import quota

As part of the EU’s “plan to address the negative trade-related effects of global overcapacity on the EU steel market” published on October 7, the EU proposes for import quotas to drop by 50% – and 60% for stainless steel – and out-of-quota levies to rise from 25% to 50%.

The existing EU steel safeguard measures have been in place since 2018 and are intended to protect EU steelmakers from a potential surge in imports. They are set to run until June 30 2026, and a new trade regime with tighter quotas is expected to replace it. However, several European stats have been pushing for earlier introduction of new trade regime, Fastmarkets reported.

“We heard April 1 [2026] as a possible date of a new system coming into force, but it might not be feasible, considering the complexity of the new system. July 1 2026 looks like a more realistic date [for new trade regime introduction].,” a steelmaker source told Fastmarkets.

If the existing safeguard measures are not replaced by the proposed new trade regime, it “would leave a substantial gap in the level of protection currently afforded to the EU steel industry,” the European Commission warned on October 7 in its draft regulation aimed at addressing the negative trade-related effects of global overcapacity on the EU steel market.

As such, the Commission proposes to introduce “an appropriate and effective protective measure beyond 30 June 2026 that will contribute to preserving a competitive and sustainable EU steel industry,” in line with suggestions first made in the Steel and Metals Action Plan (SMAP), published in March 2025.

And, crucially for EURANIMI, this will begin after the introduction of the EU’s CBAM policy “which, alone, will easily drive steel prices up by an additional 10% or more when it takes effect on January 1 2026,” the association said in a statement.

EURANIMI states that, combined, the two policies will result in “skyrocketing prices and structural shortages for the European manufacturing industry.” This will occur through lack of capacity within the EU, an influx of cheap imports of finished products into the EU – that are also exempt from CBAM liability – and a loss of European competitiveness. In addition, European exporters could lose market share through heightened costs.

To prevent any further European deindustrialization, EURANIMI requests the European Commission to reconsider its proposal and extend the quota to include end products.

They suggest applying a 50% import duty, calculated based on the steel content of imported products containing at least 20% steel. This would “ensure European manufacturers are not penalized simply because they produce within the Union,” the statement said.

“Protecting EU steel production is legitimate, but not at the expense of the manufacturing industry. Otherwise, we will lose even more production, jobs and autonomy. A strong steel industry exists by virtue of a strong European market,” Rob Greve, executive board member of EURANIMI said in the press release.

European steel distributors federation EUROMETAL has earlier made a similar request to the Commission to include steel derivatives in the scope of both CBAM and the new trade regime to protect the European manufacturing industry.

On October 21 EUROMETAL sent another letter to the European Commission, warning that the proposed safeguard measures risk “accelerating the displacement of EU downstream industry” unless equivalent protection is extended to steel derivatives and finished products.

The federation said the current framework “leaves a significant vulnerability” by shielding primary steel but not the companies that process it, exposing EU manufacturers to cheaper imports of pre-processed and finished goods. EUROMETAL called on the Commission to immediately extend safeguard coverage to include downstream steel-based products, warning that without such action, Europe could become a “dumping ground for low-cost, high-impact processed steel products.”

In the meantime, the European steel market has already started feeling the effects of CBAM and the new trade regime, with flat steel prices in particular climbing up gradually, driven by a shifting trading framework, while real demand remained subdued.

For example, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was €602.50 per tonne ($701) on Tuesday, up slightly from €602.00 per tonne on Monday October 27. The index was up by €7.50 per tonne week on week and by €24.79 per tonne month on month.

Local suppliers were looking to achieve €620-650 per tonne ex-works for January delivery material.

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EUROMETAL.net
English
30 October 2025