The EU will this week launch a safeguard investigation into imports of aluminium amid concerns that US tariffs could divert large amounts of metal to Europe.
An investigation into the need for potential safeguard measures will be launched by the European Commission on 19 March as part of a wider suite of policies aimed at supporting the EU metals sector, according to a draft document seen by Argus.
In the document, the commission states that the US' introduction of 25pc import tariffs on steel and aluminium on 12 March will limit EU producers' access to the US market while increasing pressure from exports previously sold to the US that could be redirected to the EU.
Steel is already subject to extensive safeguard measures that will once again be renewed, but aluminium is not. The commission warned in the document that the European aluminium sector is already under heavy pressure from imports, with 50pc of EU capacity curtailed since 2021 and only 46pc of aluminium requirements sourced from within the block.
Additionally, the commission will implement the "melt and pour" rule, under which the origin of goods is determined by the location at which the metal is originally melted, regardless of where it was further processed. This is intended to prevent minimal transformation to evade dumping and other duties and provide greater clarity over the origin of the product.
CBAM to be adjusted
A review of the European carbon border adjustment mechanism (CBAM) is another key segment of the metals action plan, and will include a proposal to extend the carbon levy to certain downstream steel and aluminium-intensive products.
This could address a long-held concern over CBAM that downstream goods produced overseas through carbon-intensive means would not be subject to the levy and would consequently be available to consumers at cheaper prices than CBAM-compliant EU products.
The commission will also create a solution to address the risk of carbon leakage for CBAM goods exported from the EU to third countries, and propose additional measures to prevent circumvention of the CBAM. This package of proposals will be published in the fourth quarter of this year, before the CBAM is planned to go fully live in 2026.
Scrap export controls to tighten
The metals plan calls for further control over European scrap metal supply through reciprocal export restrictions to third countries that currently limit exports to the EU, and potential new charges on scrap exports. These proposals will be finalised by the end of the third quarter of this year.
On the demand side, the commission will by the end of 2026 propose new targets for the use of steel and aluminium in key sectors including construction.
