EU Steel Action Plan Faces Mixed Reactions in Germany

CBAM

German Industry Calls for CBAM Expansion and Scrap Export Clarity

Germany’s steel industry has offered a mixed response to the European Commission’s Steel and Metals Action Plan, welcoming swift action while highlighting concerns over CBAM, scrap export restrictions, and energy costs.

Rapid Response from the European Commission

Kerstin Maria Rippel, managing director of the German steel association WV Stahl, acknowledged the Commission’s quick reaction at the Zukunft Stahl conference in Essen, organized by Handelsblatt. “It took only 14 days from a discussion with [Commission] President Ursula von der Leyen to the release of the Action Plan. This shows that Brussels has understood how dramatic the state of things is,” Rippel noted.

She emphasized the need for solutions regarding CBAM exports, the inclusion of downstream products, and anti-circumvention measures. The Commission has committed to addressing these issues by year-end.

CBAM Expansion and Trade Barriers Under Scrutiny

Christian Ehler, Member of the European Parliament, echoed Rippel’s concerns at the conference. He highlighted the need to extend CBAM to processed products and strengthen its effectiveness. “CBAM is still a long way from the instrument we would like to have,” Ehler said. “Currently, it is not effective against the challenges of reality.”

Meanwhile, the German recycling federation BVSE voiced concerns over scrap export restrictions, arguing that open market access prevents trade distortion. BVSE stressed that foreign sales reflect lower ex-yard prices than domestic transactions, underscoring the importance of unrestricted scrap trade.

Energy Prices and Hydrogen Economy Gaps

Trade union IG Metall criticized the Action Plan for its vagueness, particularly regarding energy price relief. High energy costs remain the industry’s most pressing issue. Additionally, the union noted that the plan falls short in establishing lead markets for green steel and fostering a hydrogen economy.

As the European Commission refines the plan, German industry leaders urge stronger measures to address these critical gaps and enhance competitiveness.