Latest news with #EuropeanSteelandMetalsActionPlan
Yahoo
02-06-2025
- Business
- Yahoo
Trump tariffs deals major blow to European steelmakers, Salzgitter CEO warns
By Tom Käckenhoff and Christoph Steitz DUESSELDORF/FRANKFURT (Reuters) -Salzgitter, Germany's second-biggest steelmaker, on Monday warned that Washington's tariff policy was dealing a severe blow to European industry, after the U.S. administration unveiled plans to double steel import levies to 50%. According to Germany's steel association, the United States accounted for around a fifth, or 4 million tonnes, of European steel exports outside of the EU, making it the sector's most important export market. "The erratic tariff policy of the USA is hitting Europe's economy hard - especially Germany," Salzgitter CEO Gunnar Groebler said in a statement. Groebler said that apart from the direct tariffs on exports to the United States, there was also increased import pressure on the EU market as a result of rising volumes of cheaper Asian steel in Europe. Asian steel has been flooding the European market for years and the fear of that trend intensifying due to the U.S. tariffs has been the biggest headache for Europe's sector, in addition to high energy prices. In response to those fears, the EU on April 1 tightened steel import quotas to reduce inflows by a further 15% as part of its so-called European Steel and Metals Action Plan. Shares in Salzgitter fell along with larger European peers Thyssenkrupp and ArcelorMittal, all down between 0.6 and 1.8%. Just 4.5% of Salzgitter's sales come from its U.S. business, with its non-steel technology division accounting for half of that. Thyssenkrupp has previously said that the United States accounts for less than 5% of its steel exports. Thyssenkrupp did not immediately respond to a request for comment. "An increase in steel import duties in the USA to 50% should prompt the EU Commission to accelerate its efforts to implement the measures under the Steel and Metals Action Plan," Groebler 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
04-04-2025
- Business
- Yahoo
Europe's defense puts a fresh twist on steel, growth engine of old
THE HAGUE, Netherlands — For generations, the blast furnaces of the Ruhr Valley, Silesia and Lorraine have formed the backbone of European heavy industry. Now, an uncertain geopolitical environment has thrust them back into the center of attention, with the European Union vowing to revitalize the continent's metals sector. The pitch: Europe wants to redouble its efforts to make steel 'green' – producing the key ingredients for tanks, shells and ships in an environmentally conscious way. The European Steel and Metals Action Plan, released on March 19, represents Brussels' most comprehensive strategy yet to shore up an industry facing multiple existential threats: Chinese overcapacity, crippling energy costs, and the looming shadow of new American tariffs — all while fostering its transformation to climate neutrality. The steel industry is one of the largest producers of greenhouse gases globally, responsible for roughly a tenth of total CO2 emissions. This is because it takes immense amounts of heat and, by extension, energy to melt the metal in blast furnaces. But with European rearmament en vogue and free international trade out of fashion, the continent is set to experience a boom in demand for steel as a key ingredient in its buildup of its armed forces. The plan's linking of industrial policy to defense readiness represents a significant shift in how Brussels frames its economic priorities. Commission officials explicitly linked the question of steel production to defense readiness amid rising tensions with Russia and uncertainty about long-term American security guarantees. The European Commission, headed by Ursula von der Leyen, serves as the executive branch of the European Union. It was the commission that floated the ambitious plan to rearm Europe, which promises to see Europe mobilize close to a trillion dollars for its defense sector in the next five years. Just days after that plan was announced, the EU followed up with its ambitious metals plan. The EU, at its core, was built on steel, growing out of the European Coal and Steel Community that established in the aftermath of World War 2. And indeed, domestic production still covers 90% of the continent's current consumption, the European Commission said. The situation is 'more worrying,' in the EU's words, for aluminum and nickel, where domestic production covers only 46% and 25% of Europe's demand, respectively. 'All these metals are essential for defense,' the EU's paper reads. It goes on to list out the requirements for specific armaments: 'A main battle tank contains 50 to 60 tonnes of high-quality steel; a self-propelled artillery system up to 100 tonnes; a fighter aircraft 3 tonnes of aluminium.' Europe's metals industry has been squeezed from multiple directions. Energy costs following Russia's invasion of Ukraine have skyrocketed, with European producers paying up to five times more for gas and three times more for electricity than their American counterparts, the European Commission conceded in its report. Meanwhile, imports from Asia have nearly tripled over the past decade, with every third ton of steel in the EU now coming from elsewhere. 'The foreign trade policy proposals are a step in the right direction,' said Kerstin Maria Rippel, CEO of Germany's Steel Industry Association. She said that it 'is only logical in view of the increasing import pressure and the consequences of the confrontational U.S. trade policy.' The EU's six-pillar action plan hopes to alleviate some of the other ailments, too, by addressing energy costs, carbon leakage prevention, industrial capacity protection, metal recycling, job protection, and providing investment support in addition to protectionism. Most notably, it includes a plan for a €100 billion ($108 billion) Industrial Decarbonisation Bank and a €1 billion pilot auction in 2025 aimed at electrification and low-carbon steel production. It places 'green steel' firmly at the heart of the European metals strategy. Using electrical furnaces and hydrogen, the emissions from the steel industry can be cut by as much as 95%. When burning hydrogen instead of coal or gas – the byproduct produced is water steam – rather than CO2. European steel producers have generally welcomed the plan. It demonstrates 'understanding of the urgency surrounding the situation and a readiness to address key structural challenges,' praised Aditya Mittal, the CEO of ArcelorMittal, Europe's largest steel producer. And the European Steel Association's president, Henrik Adam, echoed the sentiment, saying that 'the European Commission is sending a clear message: a strong European Union needs a strong European steel industry.' However, both executives stressed that energy costs remain 'the elephant in the room,' with Adam noting they are 'dragging down entire European industrial value chains.' Electricity costs, for instance, stubbornly hover at double or four times the price of other steelmaking locations. With the transition to electric arc furnaces, electricity consumption is expected to roughly double, industry associations say, further magnifying a cost disadvantage. Nonetheless, electricity and producing renewable hydrogen may be a more suitable way forward for Europe than relying on old methods. Gas is used during pig iron production in blast furnaces, which account for about 60% of EU steel production but has been a sticking point since Russia's invasion of Ukraine. During the 2022 energy crisis, energy costs reached 80% of total production costs for European steel producers. While fossil fuel deposits cannot be conjured from thin air, renewable energy is seen by some as the solution to the continent's energy woes, with solar, hydro and wind power available in ample quantities and ready for additional exploitation. The third age of nuclear, still in its infancy, may play a role, too. Poland, for example, is progressing in its plans to build the country's first nuclear power plant, with a final contract to be concluded this year. Nuclear power, while not strictly renewable, does not emit any harmful gases because no fuel is burnt. The electricity from these environmentally conscious sources can then be used to either power electric arc furnaces directly, or to split water to produce 'green hydrogen,' the theory goes. Russia's invasion of its smaller neighbor Ukraine has brought to the fore the importance of energy resilience for the European Union. The European Defence Fund – an EU mechanism to support research and development with military applications – specifically designed this field as a 'priority area' for defense investment in its 2025 work program. The Union has called climate change 'a priority for the EU's security and defense policies' for years. It goes well beyond simply weaning the bloc off of foreign sources of gas. EU bodies warn that rising temperatures will have knock-on effects on security as societies struggle to adapt to a growing water scarcity and lower agricultural output. The European Union's diplomatic branch, the External Action Service, believes that 'this will increasingly undermine peace and security, especially in fragile countries.' The EU estimates that 5.5% of global CO2 emissions may stem from the defense industry.
Zawya
19-03-2025
- Business
- Zawya
EU proposes cutting steel imports by 15% as Trump tariffs bite
The European Union will tighten steel import quotas to reduce inflows by a further 15% from April, a senior EU official said on Wednesday, in a move aimed at preventing cheap steel flooding the European market after Washington imposed new tariffs. European steel producers already battling high energy prices and competition from Asia and elsewhere warn that the EU risks becoming a dumping ground for cheap steel diverted from the U.S. market, which could kill off Europe's plants. "During a period when nobody is respecting WTO (World Trade Organization) rules and everyone refers to national security... the EU can't be the only continent that lets its industry fall apart," European Commission Executive Vice-President Stephane Sejourne told Reuters. Given the U.S. market was now making less commercial sense with a 25% tariff imposed by President Donald Trump's administration in place, Sejourne forecast that producers from Canada, India and China would look to sell increasing volumes in Europe. The Commission will on Wednesday propose a raft of trade-related measures to boost its ailing metals industry, part of a new European Steel and Metals Action Plan. A draft of the plan seen by Reuters earlier this week showed the EU was studying import curbs. Sejourne, who is responsible for defining the bloc's industrial strategy, said a first measure would be to reduce import quotas, known as safeguards, for multiple steel grades from April 1, which would cut inflows by approximately 15%. Volumes imported within the quotas reflect established trade flows and are not subject to tariffs. Any steel imports outside the quota will be hit by a 25% tariff. Since July 2019, the quota volumes have increased by over 25% as the bloc complies with WTO rules. In 2024, the EU imported about 60 million metric tons of steel out of which 30 million tons were within the tariff-free quota. The Commission will also set out new measures in the third quarter to replace the reinforced safeguards, which under WTO rules cannot be extended beyond June 30, 2026. Sejourne said the new mechanism will be much stricter after appeals from the industry. The details are still to be determined. EUROPEAN PRODUCTION "We also have the challenge to anticipate future tensions, wars and pandemics and we saw what happened in the past with Russian gas ... Let's avoid that steel tomorrow becomes the gas of yesterday," Sejourne said. He said the EU did not want to depend on imports for steel, which will be crucial in the EU's rebuilding of its military industrial complex after the Ukraine war. To further boost existing trade defence measures, public procurement rules are expected to be revised in 2026 to favour European steel. The Commission will also introduce a "melted and poured" rule, according to the draft Steel and Metals Action Plan. The rule would stop importers from changing the metal's origin "by performing minimal transformation." Among non-trade measures, a pilot programme with the European Investment Bank to guarantee long-term power contracts will prioritise steel and aluminium producers. The details will be announced in the second quarter of 2025. "We want to keep our steel in Europe and be able to recycle in Europe," Sejourne said. "It's a strategic issue. There is no defence industry without steel, there is no automobile without steel and we want to keep our industries." (Reporting by Julia Payne and Philip Blenkinsop Editing by Tomasz Janowski)
Khaleej Times
19-03-2025
- Business
- Khaleej Times
EU proposes cutting steel imports by 15% as Trump tariffs bite
The European Union will tighten steel import quotas to reduce inflows by a further 15% from April, a senior EU official said on Wednesday, in a move aimed at preventing cheap steel flooding the European market after Washington imposed new tariffs. European steel producers already battling high energy prices and competition from Asia and elsewhere warn that the EU risks becoming a dumping ground for cheap steel diverted from the U.S. market, which could kill off Europe's plants. "During a period when nobody is respecting WTO (World Trade Organisation) rules and everyone refers to national security... the EU can't be the only continent that lets its industry fall apart," European Commission Executive Vice-President Stephane Sejourne told Reuters. Given the U.S. market was now making less commercial sense with a 25% tariff imposed by President Donald Trump's administration in place, Sejourne forecast that producers from Canada, India and China would look to sell increasing volumes in Europe. The Commission will propose a raft of trade-related measures to boost its ailing metals industry, part of a new European Steel and Metals Action Plan. A draft of the plan seen by Reuters earlier this week showed the EU was studying import curbs. Sejourne, who is responsible for defining the bloc's industrial strategy, said a first measure would be to reduce import quotas, known as safeguards, for multiple steel grades from April 1, which would cut inflows by approximately 15%. Volumes imported within the quotas reflect established trade flows and are not subject to tariffs. Any steel imports outside the quota will be hit by a 25% tariff. Since July 2019, the quota volumes have increased by over 25% as the bloc complies with WTO rules. In 2024, the EU imported about 60 million metric tons of steel out of which 30 million tons were within the tariff-free quota. The Commission will also set out new measures in the third quarter to replace the reinforced safeguards, which under WTO rules cannot be extended beyond June 30, 2026. Sejourne said the new mechanism will be much stricter after appeals from the industry. The details are still to be determined. "We also have the challenge to anticipate future tensions, wars and pandemics and we saw what happened in the past with Russian gas ... Let's avoid that steel tomorrow becomes the gas of yesterday," Sejourne said. He said the EU did not want to depend on imports for steel, which will be crucial in the EU's rebuilding of its military industrial complex after the Ukraine war. To further boost existing trade defence measures, public procurement rules are expected to be revised in 2026 to favour European steel. The Commission will also introduce a "melted and poured" rule, according to the draft Steel and Metals Action Plan. The rule would stop importers from changing the metal's origin "by performing minimal transformation." Among non-trade measures, a pilot programme with the European Investment Bank to guarantee long-term power contracts will prioritise steel and aluminium producers. The details will be announced in the second quarter of 2025. "We want to keep our steel in Europe and be able to recycle in Europe," Sejourne said. "It's a strategic issue. There is no defence industry without steel, there is no automobile without steel and we want to keep our industries."
Yahoo
19-03-2025
- Business
- Yahoo
Exclusive-EU proposes cutting steel imports by 15% as Trump tariffs bite
By Julia Payne and Philip Blenkinsop BRUSSELS (Reuters) - The European Union will tighten steel import quotas to reduce inflows by a further 15% from April, a senior EU official said on Wednesday, in a move aimed at preventing cheap steel flooding the European market after Washington imposed new tariffs. European steel producers already battling high energy prices and competition from Asia and elsewhere warn that the EU risks becoming a dumping ground for cheap steel diverted from the U.S. market, which could kill off Europe's plants. "During a period when nobody is respecting WTO (World Trade Organization) rules and everyone refers to national security... the EU can't be the only continent that lets its industry fall apart," European Commission Executive Vice-President Stephane Sejourne told Reuters. Given the U.S. market was now making less commercial sense with a 25% tariff imposed by President Donald Trump's administration in place, Sejourne forecast that producers from Canada, India and China would look to sell increasing volumes in Europe. The Commission will on Wednesday propose a raft of trade-related measures to boost its ailing metals industry, part of a new European Steel and Metals Action Plan. A draft of the plan seen by Reuters earlier this week showed the EU was studying import curbs. Sejourne, who is responsible for defining the bloc's industrial strategy, said a first measure would be to reduce import quotas, known as safeguards, for multiple steel grades from April 1, which would cut inflows by approximately 15%. Volumes imported within the quotas reflect established trade flows and are not subject to tariffs. Any steel imports outside the quota will be hit by a 25% tariff. Since July 2019, the quota volumes have increased by over 25% as the bloc complies with WTO rules. In 2024, the EU imported about 60 million metric tons of steel out of which 30 million tons were within the tariff-free quota. The Commission will also set out new measures in the third quarter to replace the reinforced safeguards, which under WTO rules cannot be extended beyond June 30, 2026. Sejourne said the new mechanism will be much stricter after appeals from the industry. The details are still to be determined. EUROPEAN PRODUCTION "We also have the challenge to anticipate future tensions, wars and pandemics and we saw what happened in the past with Russian gas ... Let's avoid that steel tomorrow becomes the gas of yesterday," Sejourne said. He said the EU did not want to depend on imports for steel, which will be crucial in the EU's rebuilding of its military industrial complex after the Ukraine war. To further boost existing trade defence measures, public procurement rules are expected to be revised in 2026 to favour European steel. The Commission will also introduce a "melted and poured" rule, according to the draft Steel and Metals Action Plan. The rule would stop importers from changing the metal's origin "by performing minimal transformation." Among non-trade measures, a pilot programme with the European Investment Bank to guarantee long-term power contracts will prioritise steel and aluminium producers. The details will be announced in the second quarter of 2025. "We want to keep our steel in Europe and be able to recycle in Europe," Sejourne said. "It's a strategic issue. There is no defence industry without steel, there is no automobile without steel and we want to keep our industries."
