EU Prioritises Blast Furnace Subsidies, Neglects EAFs: Beltrame

Beltrame Group

Long steelmakers urge Brussels for fair protection as rebar imports flood EU market

European electric arc furnace (EAF) steelmakers are raising alarms over the EU’s continued subsidies and safeguards for blast furnace-based flat steel, claiming that long products made via the EAF route are being sidelined despite growing import threats.

Beltrame Group, a major Italian long steelmaker, tells Kallanish that the EU is focusing support on decarbonising blast furnaces, effectively neglecting EAF producers who are already low-carbon. In a joint letter with other producers sent to Brussels, Beltrame called for increased trade protection, but has yet to receive a concrete response.

Flat Products Protected, Longs Left Behind

“The EU’s current tariff-rate quota system favours flat products,” says Carlo Beltrame, country manager for France and Romania and chief business development officer. "Flat products are the most safeguarded products in Europe," he adds, noting that quotas for longs such as rebar and merchant bar are exhausted early each quarter.

While coils saw quota cuts under the system expiring in June 2026, long product quotas remain unchanged, leaving southern European markets vulnerable to low-cost imports from Turkey, Egypt, Korea, Vietnam, Malaysia, and China.

EAF Route Ignored Despite Sustainability

Despite EAF technology being inherently greener, it receives no financial backing, unlike blast furnaces, which benefit from EU decarbonisation subsidies.

Raffaele Ruella, Beltrame’s managing director, warns that some countries are dumping material $200–300/tonne cheaper than local prices, with no requirement for environmental or material traceability. This undermines EU producers, especially as low-quality imports remain unregulated.

Beltrame stresses the need for product traceability and localised production, urging Europe to rethink its globalised approach:

“The industry must become more local to ensure financial and environmental sustainability.”

He adds that while Europe views China as a primary steel threat, it overlooks Turkey, which dominates the EU longs market with little regulation — and simultaneously imports EU flat steel, highlighting a policy inconsistency.