European metal-industry groups led by Eurometal say unfair competition and rising imports of steel-intensive products threaten European jobs and strategic autonomy, prompting a September 7 Brussels protest and a European Convoy for Industrial Competitiveness.

Eurometal warns that derivatives of steel and steel-intensive manufactured goods could enter Europe without equivalent obligations on commercial, origin, carbon, or regulatory grounds, risking investment, manufacturing capacity, and long-term industrial independence.

Around 500 signatories have mobilized behind the protest to push for policy changes, culminating in the convoy heading to Brussels to demand action.

The report highlights a downstream paradox under the CBAM framework, where embedded emissions from imported steel are taxed but many downstream products remain exempt, potentially disadvantaging EU processing and favoring imports.

A central recommendation is to extend CBAM to include downstream steel products under CN codes 73-95, ensuring carbon costs are applied to finished goods and preventing relocation of processing outside the EU.

A core policy demand is an industrial electricity price cap of 5 cents per kWh to boost competitiveness and accelerate the shift from blast-furnace to electric arc furnaces.

Other measures include recognizing ferrous scrap as a strategic material, pursuing Made in EU procurement criteria for critical infrastructure, and limiting scrap exports where destination countries lack mirrored environmental standards.

Portugal’s export sector, notably metal processing, remains exposed to energy costs and global competition, with 2024 exports at €79.3 billion and metals a key pillar.

Europe’s steel-related supply chain forms a broad industrial backbone, with millions of jobs across steel trade, production, and downstream value chains.

Global trade tensions and tariffs shape the market, with a new EU safeguard regime and quota system under way amid ongoing concerns about imports diverting production away from or into Europe.

Long-term strategy emphasizes integrating direct reduced iron with electric arc furnaces, achievable green hydrogen costs, CCfDs, clean energy contracts, and a European Green Steel Label, contingent on extending CBAM to downstream products and reducing energy costs.

EUROMETAL notes a slight drop in apparent EU steel consumption in 2025 and a steady share of imports, underscoring pressure on margins and the need for resilience in the distribution and downstream sectors.