Assofermet, the Italian association representing Italian distributors of scrap, raw materials, and steel products, has firmly expressed its opposition to any further tightening of EU safeguard measures on steel imports. This stance was declared in response to the review of safeguard measures launched by the European Commission, as announced in the Official Journal of the EU on December 17, 2024.
Assofermet points out that the reopening of the inquiry, only six months after the previous review in June 2024, is based solely on data provided by EUROFER, with no significant changes in market conditions. According to the association, this decision risks exacerbating the structural issues facing the European steel market without addressing the underlying causes of the crisis.
“The persistent lack of demand from end-user sectors employing steel cannot be addressed through additional import restrictions,” Assofermet commented, adding, “Instead, it is necessary to stimulate demand growth and encourage steel consumption.”
The safeguard measures, in place since July 2018, have had a significant negative impact on the EU manufacturing sector, according to the association. Assofermet highlights how these measures have contributed to higher production costs, restricted access to essential materials, and encouraged the import of low-cost finished products from non-EU countries. This situation has adversely affected both distributors and European producers of finished goods, it said.
The association, therefore, has called for the definitive termination of the safeguard measures by December 31, 2025, to avoid further overlap with the Carbon Border Adjustment Mechanism (CBAM). Alternatively, Assofermet suggests measures to make the safeguard system fairer and more flexible: “maintain the current level of import liberalization; eliminate country-specific quotas and replace them with global quotas for each product category; and introduce a flexible management mechanism to redistribute unused balances among countries at the end of each quarter, optimizing the use of available quotas.”
Assofermet urges the European Commission to focus on long-term solutions aimed at stimulating demand and enhancing the competitiveness of European industry. “Resorting to simplistic and predictable protectionist policies, which fail to address the root issues of our sector, is not the answer,” the association stated.
Assofermet has also expressed concern over potential future actions by the new US administration in trade policy, which could further impact global steel and aluminum flows.