According to Mr Karl Tachelet of EUROFER, the European Union is one of the most challenged steelmaking regions in the world and is at risk from carbon leakage, a loss of international competitiveness and changing trade flows.

Mr Karl Tachelet at the SBB steel conference in London told delegates that “Steel demand would also continue to be driven by emerging economies as they sought to meet the requirements of their expanding industrialization and infrastructure projects leading to a rapid expansion of global steel capacities. And while China continues to dominate the global steel production table, he said that the country was not a low-cost region for steelmaking as it depended on a significant level of raw material imports.”

He said that there has been a clear indication of rising Chinese steel exports since March, which in turn had fueled rumors of additional finished product export restrictions from the country, describing China's steel industry as playing a game of catch me if you can.

He also that China and India were increasingly using export restriction measures against one another which meant that other consumers of raw materials are being discriminated against. Mr Tachelet said that "It is a vicious circle which creates new distortions on the international as well as the domestic markets.”

He added that “Europe would continue to be the destination choice for steel production outside of the Asian neighborhood, but said the explosion in the cost side of steelmaking was forcing steelmakers to pass on increases to their customers. The EU is not isolated from the world. Cost increases are putting cost values to the test.”

Delegates were also told that “EUROFER has serious concerns about the European Union Emissions Trade Trading scheme imposing additional costs on steelmakers which are not incurred by the bloc's competitors. Carbon leakage whereby steelmaking operations could be switched to countries without emissions cap regimes could occur, as a result of EU policy and the loss of international competitiveness.”