The Spanish steelmakers association UNESID has commented on the European Union’s (EU) Steel and Metals Action Plan that was officially unveiled on March 19. The plan aims to protect the EU’s steel and metals industry and to strengthen the industry’s competitiveness in the short and medium term.
Carola Hermoso, director general of UNESID, has applauded the plan, saying the European Commission (EC) has demonstrated that steel industry is the foundation of the EU. However, Ms. Hermoso underlined that it is time to take action with concrete and immediate solutions with the aim of strengthening the EU’s competitiveness. Even though the plan addresses global steel overcapacity, she said that trade policies have to be reinforced against unfair practices such as dumping and foreign subsidies. Also, trade measures should take into account both steel production and its processing, Ms. Hermoso said.
The UNESID official pointed out that the plan drew attention to high energy costs affecting the steel industry. Since energy prices remain the biggest issue, if this is not addressed properly, other measures will become less effective, she added. Spanish and other European steelmakers need access to competitive energy prices, which allow them to continue operations without disadvantage compared to their international counterparts.
Moreover, Ms. Hermoso stated that the Carbon Border Adjustment Mechanism (CBAM) needs to be thoroughly reviewed to close legal loopholes, to extend its scope in a way to include processed products and to maintain the competitiveness of exports from Europe. She added that it is vital to classify scrap as a strategic resource in a bid to ensure its availability for the domestic steel industry. In addition, even though the plan promotes low-emission production technologies and low-carbon products, she believes that the EC has to provide realistic and rapid access to financing for the green transition.
Ultimately, UNESID thinks that the speed of the plan’s implementation will determine its success or failure.
