UNESID Responds to EU’s Steel and Metals Action Plan: Urgency for Action
The Spanish Steelmakers Association (UNESID) has welcomed the European Union's Steel and Metals Action Plan, which was officially unveiled on March 19, 2025. The plan is designed to address the challenges faced by the EU’s steel and metals industry, aiming to protect and strengthen its competitiveness both in the short and medium term.
Carola Hermoso, the Director General of UNESID, commended the European Commission’s (EC) acknowledgment of the steel industry as the foundation of the EU economy. However, she stressed that the EU must act swiftly to ensure that the industry remains competitive on a global scale. While the plan outlines strategies for tackling global steel overcapacity, Hermoso emphasized that concrete and immediate solutions are needed to protect the European industry from external pressures, particularly unfair trade practices and high energy costs.
Key Points in the EU’s Steel and Metals Action Plan
The Steel and Metals Action Plan introduced by the European Commission is part of the EU's broader strategy to ensure the sustainability and competitiveness of key industrial sectors, including steel. The plan highlights several key areas of focus:
1. Global Steel Overcapacity: One of the main objectives of the action plan is to tackle global overcapacity in steel production, which has led to significant competition from cheaper, often subsidized steel produced in countries like China.
2. Trade Measures: The EU aims to reinforce trade policies to prevent unfair practices such as dumping and foreign subsidies, which distort market conditions and undermine European producers. These trade measures are seen as essential for ensuring a level playing field in global markets.
3. Energy Costs: The plan also acknowledges the high energy costs faced by European steelmakers, which is one of the most pressing concerns for the industry. Energy prices remain a major barrier to the competitiveness of European producers, and Hermoso emphasized that addressing these costs should be a priority for the European Commission.
4. Carbon Border Adjustment Mechanism (CBAM): The CBAM is a key part of the EU's strategy to tackle carbon emissions by imposing a tariff on imported goods based on their carbon footprint. However, Hermoso argued that the CBAM needs to be reviewed thoroughly to close legal loopholes and ensure that it includes processed products and remains effective in maintaining the competitiveness of European exports.
5. Green Transition Financing: The plan promotes the adoption of low-emission production technologies and the development of low-carbon products. However, UNESID has called for realistic and rapid access to financing for the steel sector’s green transition to ensure that these technologies can be adopted without hindering the industry's competitiveness.
6. Strategic Resource Classification for Scrap: The steel industry relies heavily on scrap metal as a key raw material. Hermoso suggested that scrap metal should be classified as a strategic resource to ensure its availability and secure the future of domestic steel production in Europe.
The Need for Immediate Action
While the EU Steel and Metals Action Plan outlines important goals and initiatives, UNESID has made it clear that the success of the plan depends heavily on how quickly it is implemented. Carola Hermoso highlighted that speed will be a critical factor in determining whether the measures outlined in the plan will have the desired effect on EU steelmakers.
One of the most pressing issues for Spanish and European steel producers is access to competitive energy prices. As Hermoso pointed out, without affordable energy, many steel plants in Europe will struggle to remain operational and competitive against international counterparts, particularly those in countries with lower energy costs. Addressing high energy prices is therefore seen as a fundamental step in ensuring that the European steel industry can continue to thrive and remain globally competitive.
The Challenge of Global Trade Practices
In addition to energy concerns, Hermoso also emphasized the need for stronger trade policies to combat unfair practices in global steel markets. Unfair trade practices, such as dumping, where countries sell steel at artificially low prices to gain market share, have put European steelmakers at a disadvantage. Moreover, the issue of foreign subsidies to steel producers in non-EU countries further distorts market dynamics.
Reinforcing trade measures to counteract these unfair practices is crucial for preserving the EU steel sector’s integrity and competitiveness. UNESID believes that strengthening these trade policies will help shield European producers from external pressures and create a fairer, more level playing field in international markets.
Green Transition and Financing for Steelmakers
The green transition of the steel industry is a key aspect of the European Commission's plan, with a focus on low-carbon technologies and the production of low-emission products. However, UNESID has expressed concerns about the practicalities of this transition. While the EC has laid out ambitious goals, Hermoso stressed the importance of providing realistic access to financing for steelmakers to enable them to invest in green technologies without jeopardizing their financial viability.
As the steel industry in Europe seeks to reduce its carbon footprint and shift to more sustainable practices, Aperam and other major players are looking for ways to meet these ambitious goals while staying competitive on the global stage.
Energy Costs and the EU’s Global Competitiveness
The challenge of high energy costs remains one of the most significant hurdles for European steel producers. Spain and other European countries have long faced higher energy prices compared to international counterparts, particularly in countries with lower production costs. Addressing this issue is seen as crucial for enabling European steelmakers to maintain their competitive edge in the face of global competition.
In this context, Hermoso’s calls for competitive energy prices are vital. Steel production is an energy-intensive industry, and without affordable access to energy, European steelmakers will be at a significant disadvantage compared to competitors from regions with lower energy prices, such as China and India.
The Future of Steel in Europe: A Roadmap for Success
In summary, while UNESID supports the EU’s Steel and Metals Action Plan, it stresses the need for immediate action to address key issues such as trade policies, energy costs, and the green transition. Only with timely, concrete solutions can the EU steel industry remain competitive in the face of global challenges. The success of the plan will depend on how effectively these issues are addressed, and how quickly the European Commission can implement the proposed measures to safeguard the future of steel production in Europe.
Key Takeaways:
• UNESID has welcomed the EU Steel and Metals Action Plan, applauding its recognition of the steel industry’s importance.
• The plan aims to protect EU steelmakers and strengthen competitiveness in the short and medium term.
• High energy costs remain the biggest challenge, with UNESID urging for competitive energy prices for European steelmakers.
• Trade policies must be reinforced against unfair practices such as dumping and foreign subsidies to maintain fair competition.
• The Carbon Border Adjustment Mechanism (CBAM) needs thorough review to close legal loopholes and ensure it includes processed products.
• UNESID advocates for classifying scrap metal as a strategic resource to secure its availability for European steelmakers.
• Realistic and rapid access to financing for the green transition is crucial for the successful adoption of low-carbon technologies.
• The speed of implementation will determine the success or failure of the EU Steel Action Plan.
