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Eurometal conference focuses on protectionism/autarky

Eurometal conference focuses on protectionism/autarky

London, 4 July (Argus) — The themes of trade protection and greater self-sufficiency dominated discussions at Eurometal's 75th anniversary conference in Luxembourg this week, where sentiment remained distinctly downbeat. European mills are suffering from high import penetration and softening demand. Axel Eggert, director-general of European steel association Eurofer, said 128pc of traditional import flows can enter the market duty-free, while demand has fallen by 30mn t in recent years, giving imports an outsize share. In "normal" market environments, imports would decline alongside demand, rather than increase, Eggert added, suggesting domestic capacity utilisation was close to 65pc, a level at which it is difficult to turn a profit. Illustrating the difficulties of the sector, Tata Steel is axing one in three white-collar jobs and one in five blue-collar jobs, as it looks to find a more sustainable footing. Tata's Ijmuiden plant is the lowest cost slab plant in western Europe. Eurometal itself is lobbying for import measures on steel intensive goods, as demand for product sold by its members has been affected by cheaper imports of components and finished products from Asia. Eurometal represents steel distributors and importers. Its president, Alexander Julius, reiterated calls for evidence from members, and the wider supply chain, of difficulties caused by downstream imports. On the sidelines of the conference, one automotive supplier said there was no chance for European businesses to compete with Asia. He cited Chinese electric vehicles being sold at around $20,000, much cheaper than western alternatives. China's strong grip over the battery supply chain gives it an advantage that will be difficult to overcome, he said. The European Commission understands the plight of the industry and is eager to act, but executional performance is the big key, speakers and attendees said; bureaucracy in the EU and its intention to remain WTO-compliant hampers speedy implementation of policies, delegates said. Anthony de Carvalho, head of the OECD's steel unit, said policymakers are much more aware of the situation facing the industry and have real ambition to take tangible actions — one-fifth of trade measures are being circumvented, according to WTO analysis. Europe will remain less competitive than other geographies, according to Antonio Marcegaglia, head of Europe's largest coil importer, Marcegaglia. He supported the need for stricter safeguards and tariffs, but also said Europe needed to avoid isolationism, given its high energy costs and likely need to depend on imports of certain products, such as direct reduced iron. Marcegaglia said decarbonisation was an "ideological agenda" that had not fully considered the impact on industry, while also challenging the benefit such policies had on financial market participants, while leaving the actual industry hamstrung. Marcegaglia also said there will likely be big cuts in Chinese production, as the country cannot rely on low-priced exports, given increased trade barriers. Julian Verden, managing director of London trader Stemcor, remained outspoken in his support for imported product. In response to Eggert's presentation, he said the safeguard was "designed to create an ideal market for the producer" and was much too punitive, especially without real-time quota tracking. Another speaker told Argus that competitiveness at a local level is defined by the global market, and that tariffs can only be a temporary reprieve where companies should work on their own efficiency and competitiveness. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.