[SMM Iron & Steel] Italy's Assofermet Warns EU Safeguard Measures and CBAM Threaten Downstream Steel Sector

Published: Jun 4, 2026 14:45

Save

Italy's metallurgical and steel association, Assofermet, has issued a stark warning regarding the severe impact of the European Union's upcoming trade defense mechanisms on downstream processors and distributors. With the current steel safeguard regime set to expire on July 1, 2026, new provisions will introduce a strict annual duty-free quota of approximately 18.3 million metric tons (mt) for steel imports, and any volumes exceeding this cap will face a punitive 50% duty. Coupled with the mandatory origin tracing for steel melting and pouring, and the full implementation of the Carbon Border Adjustment Mechanism (CBAM) since January 1, 2026, these policies disproportionately favor upstream producers. Assofermet argues that this unbalanced protection will trigger surging raw material costs and reduced sourcing options for the downstream supply chain, which could ultimately suppress overall European steel demand and erode the continent's manufacturing competitiveness on the global stage.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

20 mins ago

[Coal Mining and Washing Industry Achieves H1 Profit of 210.72 Billion Yuan]

From January to June, among industrial enterprises above designated size, state-controlled enterprises realized total profit of 1,307.74 billion yuan, up 17.9% YoY; joint-stock enterprises realized total profit of 3,044.32 billion yuan, up 24.7% YoY; enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan realized total profit of 887.32 billion yuan, up 2.6% YoY; and private enterprises realized total profit of 965.56 billion yuan, up 13.0% YoY.

20 mins ago

2 hours ago

Hebei Wenfeng Steel to Conduct 4-Day Blast Furnace Maintenance, Affecting 3,500 mt/day Hot Metal Production

[Steel Mill Maintenance] Hebei Wenfeng Steel, due to Tangshan's environmental protection-driven production restriction requirements, plans to conduct maintenance on a 1,080 m³ blast furnace on July 27. The maintenance is expected to last 4 days, affecting hot metal production by 3,500 mt/day.

2 hours ago

[GravitHy Files Permits for 2 Million Tonne Hydrogen-Based DRI Plant in France]

Hydrogen-based direct-reduced iron project developer GravitHy has filed building permit and environmental authorization applications for its planned low-carbon iron project at Fos-sur-Mer, France. The strategic green steel project targets an annual production of 2 million metric tons of hot briquetted iron (HBI) designed for electric arc furnace (EAF) consumption, which offers European steelmakers a lower-carbon feedstock alternative to coal-based blast furnaces. Operating at full capacity, the plant aims to cut carbon emissions by about 90% compared to conventional processes, avoiding up to 4 million metric tons of CO2 emissions annually.

2 hours ago