The European metal and steel supply chain risks entering a phase of severe crisis due to the new EU measures scheduled to take effect in 2026. This warning comes from Assofermet, the Italian national association of companies involved in the trade, distribution, and processing of steel, metals, scrap, and hardware, which today, September 15, issued a statement expressing its “serious concern” over the potential impact these rules could have on downstream operators.
According to the association, the pressure arises from the combination of several factors: the entry into force of the Carbon Border Adjustment Mechanism (CBAM), the expiration of the current safeguard measures and the possible introduction of a new replacement mechanism, together with rules of origin such as the so-called “melted and poured” principle. A scenario which, if confirmed, would structurally affect re-rollers, service centers, processors, and traders.
Among the main critical issues highlighted by Assofermet are:
- regulatory uncertainty, with little clarity on future costs related to steel imports;
- greater financial exposure for operators, who will be unable to plan sufficiently in advance without jeopardizing their budgets as early as 2026;
- weak domestic demand and structurally low consumption, creating an additional risk of loss of competitiveness for European manufacturing;
- competitive pressure from non-EU producers, who are not subject to equivalent measures, making it harder for European companies to maintain their shares in international markets;
- possible extension of safeguard measures to aluminum, which so far has been excluded, further worsening the situation.
Assofermet stressed that these dynamics could lead to a drastic reduction in steel and aluminum imports, with “devastating effects” on EU manufacturing, already under strain from US tariffs and a weak macroeconomic environment.
“The sustainability and survival of entire industrial sectors are now seriously threatened,” the association stated, recalling that on July 29 it sent an official letter to the European Commission and the Italian government calling for an urgent reconsideration of the policies under discussion. The goal, Assofermet concluded, must be to find “a balance between environmental sustainability, competitiveness, and the protection of the entire European metal and steel supply chain.”