Historic Partnership Emerges from MarketTurbulence
In a watershed moment for Europe's embattled steel sector,industry heavyweights EUROFER and EUROMETAL convened in April 2025 to establisha unified front against mounting challenges threatening the continent's steelsupply chain. The exploratory meeting marks the first formal collaborationbetween the two influential associations, representing different segments ofthe steel value chain, and signals a recognition that only coordinated actioncan address the complex challenges facing European steel producers, processors,and manufacturers. The initiative was catalyzed by discussions during theEuropean Commission's Steel Dialogue on March 4, where EUROMETAL voiced seriousconcerns about how imported steel derivatives are undercutting Europeandistribution, processing, and manufacturing industries.
Strategic Autonomy Demands Integrated Approach
Both organizations acknowledged a fundamental truth thathas gained urgency in recent years: Europe's strategic autonomy depends onmaintaining a robust manufacturing base that encompasses the entire steelsupply chain. This includes not only primary steel production but also thevital processing, distribution, and manufacturing sectors that transform rawsteel into finished products. The associations emphasized that the EuropeanUnion's Steel and Metals Action Plan provides a foundation for addressing industrychallenges, but stressed that concrete regulatory frameworks must be developedto translate policy intentions into effective support mechanisms. By sharingknowledge and perspectives across the value chain, the alliance aims to enhancethe design and implementation of such policies.
EUROMETAL's Critical Role in European SteelProcessing
EUROMETAL represents a substantial portion of Europe'sintermediate steel processing market, accounting for approximately 50% of steeldeliveries within the European Union. These processors, who transform raw steelinto specialized products for various industries, face significant competitivepressures that require more targeted support measures. The association hashighlighted that these intermediate players serve as a crucial link in thesupply chain, and their continued viability is essential for maintaining ahealthy industrial ecosystem in Europe. Without a strong processing sector,both upstream steel producers and downstream manufacturers would face severedisruptions to their operations.
Jobs at Stake Across Multiple Sectors
The potential consequences ofa weakened steel supply chain extend far beyond the industry itself. Accordingto the joint statement, an estimated 13.6 million direct jobs across steel processing,intermediate suppliers, and manufacturing sectors in the EU are at risk ifcurrent trends continue. This employment crisis would have profoundsocioeconomic implications for communities throughout Europe, particularly inregions where steel and manufacturing industries form the backbone of localeconomies. The associations emphasized that protecting these jobs requirespolicies that address the entire value chain rather than focusing exclusivelyon primary steel production.
Deindustrialization Threatens InnovationEcosystem
Beyond immediate economic concerns, the two associationswarned that continued weakening of the steel supply chain threatens toaccelerate European deindustrialization, with far-reaching consequences. Thisincludes the potential relocation of research and development capacities, theloss of innovation hubs, and increased dependence on external markets forcritical materials and products. Such developments would undermine Europe'stechnological sovereignty and ability to compete globally in high-value industries.The collaboration between EUROFER and EUROMETAL aims to prevent this outcome byadvocating for policies that strengthen the entire industrial ecosystem.
Industry Leaders Express Commitment toCollaboration
The initial meeting has set the stage for deeper analysisand ongoing discussions, with follow-up initiatives planned in the comingmonths. Alexander Julius, President of EUROMETAL, emphasized the existentialstakes: "The EU steel using and steel making industries are at stake. Thefocus of European policymakers needs to be expanded to the complete supply andvalue chain of our industry. Joint efforts of EUROFER and EUROMETAL will form asolid basis approaching this important topic sustainably." Axel Eggert,Director General of EUROFER, reinforced this message, stating: "BothEUROMETAL and EUROFER have a strong interest in a vibrant European steel valuechain at the benefit of the EU's economic resilience and strategic autonomy aswell as investment, innovation and quality jobs in Europe. We therefore appealon EU policymakers to support our joint efforts."
Economic Headwinds Intensify Need for UnifiedResponse
The collaboration comes at a critical juncture for theEuropean steel industry, which continues to face significant challengesincluding high energy costs, carbon leakage concerns, and intensifying globalcompetition, particularly from regions with lower environmental and socialstandards. Recent economic data indicates persistent downside factors affectingthe steel market outlook, with no relief anticipated in the short to mediumterm. This difficult market environment has accelerated the need for industry-widecooperation to develop sustainable solutions that preserve Europe's industrialcapabilities while advancing climate objectives.
Key Takeaways:
• EUROFER and EUROMETAL have formed a strategic alliance tostrengthen the entire European steel supply chain, following concerns raisedduring the European Commission's Steel Dialogue about the impact of importedsteel derivatives on domestic industries.
• The collaboration aims to protect an estimated 13.6million direct jobs across steel processing, intermediate suppliers, andmanufacturing sectors in the EU that are currently at risk due to competitivepressures and policy gaps.
• Industry leaders Alexander Julius (EUROMETAL) and AxelEggert (EUROFER) have called on EU policymakers to expand their focus to thecomplete steel value chain, emphasizing that strategic autonomy requiressupporting both production and processing sectors.
