EUROMETAL President Alexander M. Julius told the Steel Networking Summit 2026, organised in Istanbul by the Steel Exporters' Association (ÇİB), that the gap between the European Union's protection of steel producers and the trade conditions applied to finished products containing steel is weakening the competitiveness of European manufacturers. Julius called for a level playing field across the entire steel value chain.
The remarks were reported by EUROMETAL on eurometal.net. Julius said the EU has developed anti-dumping measures, countervailing duties and safeguard measures on steel imports over the past 25 years, while industries that use steel as an input have not received comparable protection against imported finished products. He argued that this disparity between steel producers and steel-using manufacturers should be taken into account when assessing the decline in European steel demand.
According to the presentation, the EU applies an annual duty-free quota of 18.3 million tons across 30 product categories for steel imports, with a 50% duty on imports exceeding the quota from July 1, 2026. Anti-dumping and countervailing measures against subsidies are also used as trade defence instruments. For many industrial products containing steel, typical most-favoured-nation (MFN) tariffs were reported at between 0% and 2.7%.
These products have no industry-wide safeguard quota comparable to the one applied to steel, and trade defence measures remain limited to specific products. The presentation also noted that, at the end of 2025, approximately one-third of the EU's 232 trade defence measures in force concerned iron and steel. Julius stated that trade measures introduced by the United States and Canada affect not only direct steel trade but also trade in steel-containing products.
According to an assessment in the presentation, based on EUROMETAL and Metals Consulting International sources, trade flows previously destined for the US and Canada, which represent more than 15% of global trade in steel derivative products, have been partially redirected to the EU. The presentation highlighted Section 232 measures and melt-and-pour requirements in the US market, as well as relevant customs regulations in Canada, and warned that the EU's lower trade barriers for steel-containing products increase the risk of trade diversion and dumping. EUROMETAL also observed a quarterly increase of approximately 3% in imports of steel-containing products.
Julius said the Carbon Border Adjustment Mechanism (CBAM) represents an additional cost for steel-using manufacturers, which must reflect carbon costs and higher input costs in their product prices. These companies face difficulties competing in third-country markets where comparable costs do not apply, a problem that, in Julius's view, also affects Europe's export capacity. According to the latest information available to EUROMETAL, no mechanism is currently planned to compensate for carbon costs on exports.
EUROMETAL has proposed an approach that could offset these costs in a manner similar to the treatment of value-added tax (VAT) on exports. The presentation also addressed the financial phase of CBAM, which began on January 1, 2026. Based on Macrometal data, it examined weighted average emissions calculated with existing production methods and the benchmarks used to determine the equivalent of free allowances.
Criticism raised in the presentation included the claim that country-specific default emissions values had been increased without clear justification, and that certain production method definitions did not adequately reflect actual production conditions. The additional 10% applied to country-specific values in 2026 and uncertainties surrounding emissions monitoring methodologies were also cited as issues. Julius noted that EUROMETAL launched a call to action in April to protect the steel value chain, which has been supported by more than 500 companies, national federations and industry organisations.
The initiative aims to inform decision-makers in Brussels and at national level about the pressure arising from imports of steel-containing products, and EUROMETAL is working to demonstrate the increase in imports and its impact on manufacturing through data requested by policymakers. Julius also addressed Türkiye's hot-rolled coil (HRC) exports to the EU under the new quota system. The presentation put Türkiye's country-specific HRC quota at 161,000 tons for each of the third and fourth quarters of 2026, with an additional quota pool of 121,000 tons for countries covered by free trade agreements in each period.
HRC imports from Türkiye into the EU totalled 289,000 tons in July and August. Based on the combined country-specific quota and additional pool, the presentation indicated an excess of approximately 7,000 tons. Türkiye was highlighted as a key user of the additional pool in the third quarter, while Türkiye and India were identified as key countries in the fourth quarter.
Julius said uncertainty over quota availability affects import decisions and competition between countries, and noted that Türkiye has improved its production capacity and quality in recent years. He also questioned how far rising costs can be passed on to end users and whether current price levels are sustainable. The remarks come in the same EUROMETAL edition that reported EUROFER's forecast, presented at the summit, of EU apparent steel consumption growth of 0.1% in 2026 and 2.3% in 2027, with capacity utilisation below 70%.
Julius added that weak demand in the European steel industry cannot be assessed independently of the loss of market share experienced by steel-consuming industries. Sources: EUROMETAL (eurometal.net), reporting on remarks by Alexander M. Julius at Steel Networking Summit 2026, and on the EUROFER presentation at the same event.
Source: eurometal.net