The European Commission's decided to issue a Statement of Objections regarding MMG's proposed acquisition of Anglo American's Brazilian nickel operations. The European Steel Association (EUROFER) has welcomed this decision, citing the importance of maintaining competition and security of raw material supply for Europe's stainless steel industry.
According to EUROFER, European stainless steel producers depend on reliable access to imported ferronickel to manufacture high-quality, lower-carbon steel. The association said such trade should remain open and competitive while being consistent with European sustainability, decarbonization and social responsibility standards.
EUROFER warns against further concentration of nickel supply
“Any transaction affecting strategic raw materials should strengthen competition, security of supply and Europe's industrial autonomy, not create new dependencies,” Axel Eggert, EUROFER director general, said, adding that the Commission's position helps safeguard independent and competitive access to a key raw material for European stainless steel production.
EUROFER stated that maintaining access to competitively priced, low-carbon ferronickel is important for European steelmakers seeking to meet their decarbonization requirements while continuing to invest and produce in Europe.
The association has warned that further concentration in strategic raw material supply could increase suppliers' pricing power, reduce purchasing options and affect market conditions to the long-term disadvantage of European producers.
EUROFER also pointed to Indonesia's ban on nickel ore exports and its impact on the global nickel and stainless steel supply chain, arguing that further consolidation of nickel supply in Brazil should therefore be carefully assessed.
EUROFER calls for lasting safeguards for Brazilian ferronickel supply
According to EUROFER, any eventual outcome of the transaction should include robust and lasting structural, governance and/or ownership-based safeguards rather than solely contractual commitments.
The association said such measures should preserve direct and competitive access for European stainless steel producers to ferronickel produced by Anglo American's Brazilian operations and ensure that the assets continue to operate on market-oriented terms.
“Europe's steel industry relies on international trade and will continue to do so. But open trade must also be fair, resilient and competitive,” Eggert stated, adding that Europe should maintain its ability to source raw materials responsibly and avoid excessive dependence on a single country or supply chain.
