The European Commission presented the “European Steel and Metals Action Plan” yesterday, March 18, a document aimed at shaping the future of the sector in the context of ecological transition and global challenges. However, according to Federacciai, the Italian federation of steel companies, the plan still lacks clarity in its implementation and leaves several critical issues unresolved, particularly concerning energy costs, trade policies, and scrap metal management.
In its statement, the federation emphasized, “The energy issue remains unaddressed, with no concrete measures to lower costs for metallurgical industries, which could lead to imbalances between EU countries. On the CBAM, we appreciate the commitment to reviewing the system to ensure exports are included, but the ‘melted and poured’ clause has merely been postponed for future evaluation, leaving the door open to potential tariff evasion.”
On a more positive note, Federacciai acknowledges the return to a strong level of protection for the post-safeguard mechanism, with the draft now expected in the third quarter. However, the most pressing concern remains scrap metal exports. “The issue has been recognized, but no concrete measures have been put in place,” the federation stated. It went on to note, “Actions are still tied to a vague future assessment, without addressing the risk of strategic material being drained to countries with lower environmental standards. A clear policy is needed to keep scrap metal within Europe and prevent its export to regions that do not comply with our environmental regulations - otherwise, this could seriously undermine the green transition of European steelmaking. The framework remains fragmented and requires strong collaboration with the Commission.”
To ensure a truly effective and balanced system, Federacciai is calling for direct involvement in discussions with the European Commission, highlighting Italy’s role as the second-largest steel producer in Europe and the leader in decarbonization efforts.