EUROFER calls for support of metallurgists and jobs in the EU

On the eve of the trade meeting of the Foreign Affairs Council, the European Manufacturers Association began to urge the Commission to once again consider the issue of protecting metallurgy. This should protect the sector from steel shipped to Europe, given US Section 232 tariffs and strong global manufacturing capacity. Axel Eggert, CEO of EUROFER, said: “Europe is still awash with steel imports, even though domestic demand is stalling. This year we saw a reduction of at least 3% despite rising raw material prices and CO2 emissions. In particular, these CO2 costs are not borne by other producers around the world. This year, European steel companies were to announce production cuts of at least 15 million tonnes; 15,000 jobs were lost or threatened. This is in addition to a 20 percent reduction in the workforce in steel since 2008. ”

He said: “First, it was US Section 232 tariffs that stimulated the massive diversion of steel from their market to ours, aided by the ever-large global steelmaking capacity. Second, WTO reform is becoming more pressing as we need international action to ensure fair trade, including through its environmental justice. We need the EU to act decisively to prevent the collapse of our sector and save the communities that depend on it. Since the first review, conditions in both the European and international markets have become more negative. Trade flows are distorted, and the situation on the EU steel market has turned out to be more negative than previously thought. Global demand for steel is also weakening, driving down global prices and pushing exporters to export products to other open economies. ”

EUROFER is asking for a review of the precautionary measures to reflect the fact that quotas were well above traditional EU import levels and that market conditions have deteriorated significantly since then.

The agenda for Thursday's meeting includes an overview of trade relations between the EU and the US, as well as discussions on the WTO and trade relations with China. These are key topics for the EU steel sector. The meeting should also provide an opportunity for ministers to discuss EU guarantees. The revision of guarantees was put into effect in October after the revision, but these changes were insufficient in light of the changing circumstances in the global steel sector.