The European Commission's "European Steel and Metals Action Plan," presented on March 18, aims to shape the future of the steel sector amid ecological transitions and global challenges. However, Federacciai, the Italian federation of steel companies, has expressed concerns that the plan still raises many uncertainties, particularly in areas like energy costs, trade policies, and scrap metal management.
In its statement, Federacciai pointed out that the energy issue remains unresolved, with no concrete measures to lower costs for metallurgical industries. This lack of action could lead to imbalances between EU countries. Regarding the Carbon Border Adjustment Mechanism (CBAM), while Federacciai acknowledged the European Commission’s commitment to reviewing the system to include exports, it noted that the "melted and poured" clause has only been postponed for future evaluation, leaving the potential for tariff evasion unaddressed.
On a more positive note, the federation welcomed the strong protection level for the post-safeguard mechanism, with a draft expected in the third quarter. However, scrap metal exports remain a primary concern. While the issue has been recognized, no concrete measures have been put in place, and actions are still tied to a vague future assessment. Federacciai warns that without clear policies to prevent the export of scrap metal to regions with lower environmental standards, the green transition of European steelmaking could be jeopardized.
To ensure a balanced and effective system, Federacciai has called for direct involvement in discussions with the European Commission, emphasizing Italy’s role as the second-largest steel producer in Europe and a leader in decarbonization efforts. The federation stresses the need for strong collaboration to avoid undermining the EU’s environmental goals.
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