Latest news with #Eurofer
Reuters
8 hours ago
- Business
- Reuters
Trump tariffs fan calls by European metal producers for scrap export curbs
BRUSSELS, June 24 (Reuters) - Metal producers in the European Union are lobbying the bloc to impose export duties or curbs on scrap metal shipments "in the next few weeks" to stem a sharp increase in flows to the United States caused by the Trump administration's trade policies. Europe's metal producers are warning of a shortage of scrap and an upending of carbon-emission strategies after U.S. Donald Trump's 50% levy on imported steel and aluminium heightened demand, and sharply inflated prices, for tariff-free scrap. The aluminium industry is asking the EU to stem outflows using export authorisation measures, hitherto only used during the COVID pandemic, when the European Commission demanded companies request permission to export protective gear and vaccine doses. Export tariffs would be another option. "Scrap is a big issue," said Eurofer director general Axel Eggert. "We are asking for an export duty on scrap," he said highlighting that most non-EU producer countries had restrictions in place. Scrap is integral to the EU's push to reduce carbon emissions in the metal industry. Recycling saves up to 95% of the energy required for aluminium production and 80% for steel, the European Commission has said. Scrap metal exports to the United States nearly tripled to 6,028 metric tonnes in the first three months of 2025 versus the same period a year earlier, albeit from a low base, turning a trickle into a flood, said industry lobby group Europe Aluminium, which includes Alcoa (AA.N), opens new tab, Befesa ( opens new tab and AMAG Austria ( opens new tab. Total EU aluminium scrap exports were 345,000 metric tonnes in the first quarter this year, according to Europe Aluminium. With the United States now keeping its scrap, the EU will be left as the main exporting region, it said. Scrap exports were a growing problem for EU metal producers even before Trump imposed duties on imports of primary steel and aluminium in a bid to encourage U.S. domestic production, EU metal producers said. A record 19 million tonnes of ferrous scrap left the bloc in 2023, the majority to Turkey, but also to India, Egypt, Pakistan and the United States, said European steel association Eurofer, which includes Tata Steel ( opens new tab, Thyssenkrupp ( opens new tab and ArcelorMittal ( opens new tab. Metal producers cannot wait for the bloc to strike a trade deal with Trump before taking action, Europe Aluminium's head Paul Voss said. European officials have said the EU may not be able to strike a full deal by Trump's July 9 deadline. Export authorisations had not been used this way before "but extraordinary times call for extraordinary action," Voss added, calling for measures "in the coming weeks". The EU sees itself as a champion of free trade and export curbs are rare. Beyond pandemic restrictions, EU export controls have been limited to shipments of arms, products that have military uses and for countries subject to sanctions. The European Commission said it was engaging regularly with metal producers and recyclers, assessing the market situation. It said it would determine in the third quarter whether a trade measure was necessary for steel, aluminium and copper. The tariffs have given U.S. metal producers incentive to maximise their domestic purchase of scrap metal and scour overseas markets. Industry players said a so-called "arbitrage window" - a short-lived price gap between two markets - had hit around $750 per tonne with the 50% tariff. "If that arbitrage window stays, we will see massive damage to companies that invested the most into the Green Deal," Rob van Gils, CEO of Austria's Hammerer Aluminium Industries, said, referring to the EU's green policy agenda to steer the bloc to carbon emission neutrality by 2050. Van Gils said companies which rely on buying scrap would struggle if local scrap costs neared or even exceeded the market price of final product, or end up buying primary metal from third countries like India with high carbon footprints. "The CO2 footprint of the aluminium industry will be down the toilet," van Gils continued. Europe's scrap sellers oppose export restrictions. Recycling industry group EuRIC said there was no shortage of scrap in Europe and that EU demand only absorbed some 80% of supply for steel. Eurofer's Eggert said export restrictions would help prevent rival producers overseas from buying EU scrap to then sell low-carbon recycled steel back to the bloc. "We are not asking for a ban, but we need to retain more scrap, or incentivise its use scrap in Europe for our decarbonisation," he said.
Yahoo
8 hours ago
- Business
- Yahoo
Trump tariffs fan calls by European metal producers for scrap export curbs
By Philip Blenkinsop and Julia Payne BRUSSELS (Reuters) -Metal producers in the European Union are lobbying the bloc to impose export duties or curbs on scrap metal shipments "in the next few weeks" to stem a sharp increase in flows to the United States caused by the Trump administration's trade policies. Europe's metal producers are warning of a shortage of scrap and an upending of carbon-emission strategies after U.S. Donald Trump's 50% levy on imported steel and aluminium heightened demand, and sharply inflated prices, for tariff-free scrap. The aluminium industry is asking the EU to stem outflows using export authorisation measures, hitherto only used during the COVID pandemic, when the European Commission demanded companies request permission to export protective gear and vaccine doses. Export tariffs would be another option. "Scrap is a big issue," said Eurofer director general Axel Eggert. "We are asking for an export duty on scrap," he said highlighting that most non-EU producer countries had restrictions in place. Scrap is integral to the EU's push to reduce carbon emissions in the metal industry. Recycling saves up to 95% of the energy required for aluminium production and 80% for steel, the European Commission has said. Scrap metal exports to the United States nearly tripled to 6,028 metric tonnes in the first three months of 2025 versus the same period a year earlier, albeit from a low base, turning a trickle into a flood, said industry lobby group Europe Aluminium, which includes Alcoa, Befesa and AMAG Austria. Total EU aluminium scrap exports were 345,000 metric tonnes in the first quarter this year, according to Europe Aluminium. With the United States now keeping its scrap, the EU will be left as the main exporting region, it said. Scrap exports were a growing problem for EU metal producers even before Trump imposed duties on imports of primary steel and aluminium in a bid to encourage U.S. domestic production, EU metal producers said. A record 19 million tonnes of ferrous scrap left the bloc in 2023, the majority to Turkey, but also to India, Egypt, Pakistan and the United States, said European steel association Eurofer, which includes Tata Steel, Thyssenkrupp and ArcelorMittal. Metal producers cannot wait for the bloc to strike a trade deal with Trump before taking action, Europe Aluminium's head Paul Voss said. European officials have said the EU may not be able to strike a full deal by Trump's July 9 deadline. Export authorisations had not been used this way before "but extraordinary times call for extraordinary action," Voss added, calling for measures "in the coming weeks". CARBON FOOTPRINT The EU sees itself as a champion of free trade and export curbs are rare. Beyond pandemic restrictions, EU export controls have been limited to shipments of arms, products that have military uses and for countries subject to sanctions. The European Commission said it was engaging regularly with metal producers and recyclers, assessing the market situation. It said it would determine in the third quarter whether a trade measure was necessary for steel, aluminium and copper. The tariffs have given U.S. metal producers incentive to maximise their domestic purchase of scrap metal and scour overseas markets. Industry players said a so-called "arbitrage window" - a short-lived price gap between two markets - had hit around $750 per tonne with the 50% tariff. "If that arbitrage window stays, we will see massive damage to companies that invested the most into the Green Deal," Rob van Gils, CEO of Austria's Hammerer Aluminium Industries, said, referring to the EU's green policy agenda to steer the bloc to carbon emission neutrality by 2050. Van Gils said companies which rely on buying scrap would struggle if local scrap costs neared or even exceeded the market price of final product, or end up buying primary metal from third countries like India with high carbon footprints. "The CO2 footprint of the aluminium industry will be down the toilet," van Gils continued. Europe's scrap sellers oppose export restrictions. Recycling industry group EuRIC said there was no shortage of scrap in Europe and that EU demand only absorbed some 80% of supply for steel. Eurofer's Eggert said export restrictions would help prevent rival producers overseas from buying EU scrap to then sell low-carbon recycled steel back to the bloc. "We are not asking for a ban, but we need to retain more scrap, or incentivise its use scrap in Europe for our decarbonisation," he said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-03-2025
- Business
- Yahoo
What products might be hit by European tariffs?
Red states may be hardest hit when the European Union retaliates against U.S. tariffs on steel and aluminum. The E.U. has said it will issue retaliatory tariffs in two phases, with the first wave taking effect on April 1, affecting 8 billion euros worth of goods. A 99-page list of products that may be taxed by the second wave of tariffs — which goes into effect on April 13 and targets 18 billion euros worth of goods — has already been made public. In total, over the two phases, the E.U. will impose 26 billion euros worth of additional tariffs. It remains unclear how the tariffs will be structured. The E.U. is currently speaking to consumers, companies, and policymakers before it finalizes the list of goods. The 27 countries in the union are likely to strike crops in the Louisiana district represented by Speaker Mike Johnson, in addition to Nebraska and Kansas livestock, as European officials aim to target politically sensitive areas that could force the U.S. to the negotiating table. Maroš Šefčovič, the E.U. trade commissioner, met with U.S. Commerce Secretary Howard Lutnick last month in an attempt to prevent the tariffs. On Wednesday, he said the trip to Washington made clear 'that the E.U. is not the problem.' 'I argued to avoid the unnecessary burden of measures and countermeasures, but you need a partner for that. You need both hands to clap,' he told reporters. The European steel association Eurofer has said that the union could lose as much as 3.7 million tons of steel exports, as the U.S. is the second largest market for E.U. steel producers, making up 16 percent of all European steel exports. According to the E.U., the annual trade volume between the union and the U.S. is about $1.5 trillion, or 30 percent of global trade. The E.U. has an export surplus in goods, but they have noted that the U.S. has a surplus when it comes to services. These are some of the goods which may be hit in the second wave of tariffs. The initial tariffs will be placed on goods that were affected during the trade war in President Donald Trump's first term. Whiskey and Harley-Davidson motorcycles face tariffs of as much as 50 percent. The head of the Distilled Spirits Council, Chris Swonger, said that the actions from the E.U. are 'deeply disappointing and will severely undercut the successful efforts to rebuild U.S. spirits exports in EU countries,' according to the AP. The E.U. buys significant amounts of American whiskey, and the exports increased by 60 percent in the last three years as previous tariffs were removed. The E.U. tariffs may target household appliances, both large and small, as trade bureaucrats attempt to hit the U.S. where it hurts. Some tariffs may be interpreted as direct attacks on American pastimes. The European Commission revealed their two-stage plan on Wednesday, which goes much further than the trade spat from Trump's first term in the White House. Heavy machinery may also be targeted as American industry is scrutinized. The taxes on imports may be placed on beef and poultry from Republican states such as Kansas and Nebraska. Some blue states may also be hit, including Illinois, the top U.S. producer of soybeans. Alabama and Georgia may see their wood industries targeted by the tariffs. Ursula von der Leyen, the president of the European Commission, said in a statement that the union 'will always remain open to negotiation.' 'As the U.S. [is] applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros,' she added. 'We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs,' she added. Von der Leyen went on to say that 'Jobs are at stake. Prices will go up. In Europe and in the United States.' 'We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy,' she said. Meanwhile, the American Chamber of Commerce to the European Union said that the U.S. and E.U. tariffs 'will only harm jobs, prosperity and security on both sides of the Atlantic.' 'The two sides must de-escalate and find a negotiated outcome urgently,' the chamber added Wednesday.
The Independent
12-03-2025
- Business
- The Independent
What products might be hit by European tariffs?
Red states may be hardest hit when the European Union retaliates against U.S. tariffs on steel and aluminum. The E.U. has said it will issue retaliatory tariffs in two phases, with the first wave taking effect on April 1, affecting 8 billion euros worth of goods. A 99-page list of products that may be taxed by the second wave of tariffs — which goes into effect on April 13 and targets 18 billion euros worth of goods — has already been made public. In total, over the two phases, the E.U. will impose 26 billion euros worth of additional tariffs. It remains unclear how the tariffs will be structured. The E.U. is currently speaking to consumers, companies, and policymakers before it finalizes the list of goods. The 27 countries in the union are likely to strike crops in the Louisiana district represented by Speaker Mike Johnson, in addition to Nebraska and Kansas livestock, as European officials aim to target politically sensitive areas that could force the U.S. to the negotiating table. Maroš Šefčovič, the E.U. trade commissioner, met with U.S. Commerce Secretary Howard Lutnick last month in an attempt to prevent the tariffs. On Wednesday, he said the trip to Washington made clear 'that the E.U. is not the problem.' 'I argued to avoid the unnecessary burden of measures and countermeasures, but you need a partner for that. You need both hands to clap,' he told reporters. The European steel association Eurofer has said that the union could lose as much as 3.7 million tons of steel exports, as the U.S. is the second largest market for E.U. steel producers, making up 16 percent of all European steel exports. According to the E.U., the annual trade volume between the union and the U.S. is about $1.5 trillion, or 30 percent of global trade. The E.U. has an export surplus in goods, but they have noted that the U.S. has a surplus when it comes to services. These are some of the goods which may be hit in the second wave of tariffs. Bourbon, boats, and motorcycles The initial tariffs will be placed on goods that were affected during the trade war in President Donald Trump 's first term. Whiskey and Harley-Davidson motorcycles face tariffs of as much as 50 percent. The head of the Distilled Spirits Council, Chris Swonger, said that the actions from the E.U. are 'deeply disappointing and will severely undercut the successful efforts to rebuild U.S. spirits exports in EU countries,' according to the AP. The E.U. buys significant amounts of American whiskey, and the exports increased by 60 percent in the last three years as previous tariffs were removed. Mowers, washing machines, and refrigerators The E.U. tariffs may target household appliances, both large and small, as trade bureaucrats attempt to hit the U.S. where it hurts. Outdoor gear, tents, and tools Some tariffs may be interpreted as direct attacks on American pastimes. The European Commission revealed their two-stage plan on Wednesday, which goes much further than the trade spat from Trump's first term in the White House. Heavy machinery may also be targeted as American industry is scrutinized. The taxes on imports may be placed on beef and poultry from Republican states such as Kansas and Nebraska. Some blue states may also be hit, including Illinois, the top U.S. producer of soybeans. Alabama and Georgia may see their wood industries targeted by the tariffs. Chewing gum, communion wafers, peanut butter, and nicotine products Ursula von der Leyen, the president of the European Commission, said in a statement that the union 'will always remain open to negotiation.' 'As the U.S. [is] applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros,' she added. 'We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs,' she added. Handbags, jeans, shirts, and women's négligés Von der Leyen went on to say that 'Jobs are at stake. Prices will go up. In Europe and in the United States.' 'We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy,' she said. Meanwhile, the American Chamber of Commerce to the European Union said that the U.S. and E.U. tariffs 'will only harm jobs, prosperity and security on both sides of the Atlantic.' 'The two sides must de-escalate and find a negotiated outcome urgently,' the chamber added Wednesday.
Yahoo
18-02-2025
- Business
- Yahoo
Trump's Tariffs Create Uncertainty in European Steel Market
Via Metal Miner European bodies recently criticized U.S. President Donald Trump's order to introduce tariffs on all steel and aluminum imports entering the country. Meanwhile, experts at home and abroad continue to evaluate how the trade dispute will affect steel prices and aluminum prices. The European Commission, the European Union's executive arm, recently vowed that it would respond swiftly to Trump's February 10 order to impose a 25% import tariff on steel and 10% on aluminum, regardless of the point of origin. If you're worried about changing steel prices and aluminum prices as a result of tariffs, MetalMiner's weekly newsletter covers weekly metal price updates with weekly market insights and macroeconomics news. 'Unjustified tariffs on the EU will not go unanswered—they will trigger firm and proportionate countermeasures,' EC President Ursula von der Leyen said in a February 11 statement. 'The EU will act to safeguard its economic interests. We will protect our workers, businesses and consumers,' von der Leyen added. The statement did not indicate what reciprocal actions the EC would undertake. The tariffs are due to take effect from March 12 and presently do not allow for exemptions on points of origin. Trump initially announced plans to introduce the tariffs on February 9 while on board Air Force One. Brussels-based European Steel Association, commonly known as Eurofer, also criticized the tariffs. A February 11 statement quoted the organization's president, Dr. Henrik Adam, as saying, 'If all product exemptions and tariff rate quotas are now removed, the EU could lose up to 3.7 million metric tons of steel exports to the United States.' He added that 'The U.S. is the second biggest export market for EU steel producers, representing 16% of the total EU steel exports in 2024. Losing a significant part of these exports cannot be compensated by EU exports to other markets,' A February 10 report by Politico stated that around 3.8 million metric tons of steel and aluminum entered the United States from the bloc in 2023, making the EU the country's third-largest importer. The cited data came from the United Nations Commodity Trade Statistics Database, which has its headquarters in New York. On February 6, Eurofer representatives warned that growing economic uncertainty within Europe will continue to weigh on the steel market for the rest of 2025 and will likely stretch into 2026. At the time, the organization stated that the expected recovery in apparent steel consumption for 2025 had been downgraded to 2.2% from 3.8%, whilst end-user sectors' recession had fallen to 0.9% from 1.6%. In December 2021, the EU finalized an agreement with the U.S. Government on tariff rate quotas regarding steel imports from the bloc. The deal exempted them from the 25% tariffs on steel imports introduced by the first Trump administration (2017-2021) in 2018. The new tariffs also cancel any concession towards Ukraine, which has used its rolling works in Bulgaria and Italy to roll long steels and flat steels using semi-finished Ukrainian material. A Presidential Proclamation issued by the White House stated that 'Rather than supporting the Ukrainian steel industry and alleviating the economic harm caused by the ongoing conflict, the benefits of this temporary exemption have accrued primarily to producers in EU member countries, which have significantly increased duty-free exports to the U.S. market of steel articles processed from Ukrainian semi-finished steel.' It continued to say that 'Since 2021, imports from Ukraine have remained steady at 0.5% of total U.S. imports, while imports from the European Union have increased 11.2% to 14.8%. This has facilitated evasion of both the Section 232 measures and of anti-dumping duties that would be paid if the finished products were imported directly from Ukraine.' One trader told MetalMiner that the planned tariffs are creating uncertainty in the European steel market, at least for now. For example, mills in Europe and Asia have started to back away from doing any transactions to the United States. This is not only due to fear of the upcoming tariffs, but also of retrograde tariffs. 'You cannot take measures against that. These are dangerous times,' the trader said. Meanwhile, prices for hot rolled coil on the domestic market have started to rise with the expectation that mills will cut back production to hedge against increased supply. The trader stated that mills were 'kind of reluctant' to push up their production due to fears of financial impacts. The effect on steel prices is starting to show. Offers for the flat rolled product currently stand at €650 ($650) per metric ton EXW for May delivery, up from the €630-635 ($660-665) seen in late January. Benchmark 62% FE iron ore prices also reached a high of $106.77 per metric ton CFR Qingdao on February 13. According to data from the website Trading Economics, this represents an increase of 8.15% from the $98.72 recorded on January 13. That price is also up 16.59% from $91.57 reported on September 18. One European market participant took a wait-and-see approach with regard to the new tariffs. He pointed to the U.S. imposing 25% tariffs on all imports from Canada and Mexico on February 1. These were set to come into force on February 4, but Trump later agreed to a 30-day pause as the two neighboring states undertook steps to appease U.S. concerns about border security and narcotics trafficking. 'Everybody's worrying about the after-effects. Let's first see if it materializes before panicking,' the market participant said about the planned tariffs. Other sources note that even if the tariffs do come into effect, the United States will likely need to import steel, as mills in the country do not have the capacity to cope with demand. Data from the World Steel Association stated that the United States poured about 81.4 million metric tons of crude steel in 2023 against an apparent consumption of about 93 million metric tons. Sources also told MetalMiner that many end users in the country are continuing to seek steel from abroad, including in Europe. The primary reason is that they want higher quality materials that may not be available from domestic producers. This, more than anything, has the potential to impact steel prices. By Christopher Rivituso More Top Reads From this article on
