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Ecodesign for Sustainable Products Regulation
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The steel industry welcomes the release of the recently proposed Ecodesign for Sustainable Products Regulation (ESPR) by the European Commission. The European Union needs strong legislation to achieve its ambitious objectives set in the Green Deal and Circular Economy Action Plan, which can improve its competitiveness on global markets and set an example to other economies. The success of this general framework legislation relies on numerous related delegated and implementing acts to be released, the revision of already existing ones and their mutual coherence. It will extend the scope to a wider range of products to strengthen the circularity criteria, to introduce new information requirements for products and to provide more sustainable information alongside sustainable products for customers on the European market. Living up to this ambition will require a sustained, coherent and forward-looking thrust from the European Commission. The European steel industry is ready to assist in that challenge.
Key areas are: harmonisation, requirements, digital product passport and substances of concern.
In conclusion, the European Commission proposal is an important but also challenging starting point towards the transition to the circular economy, which is a key contributor for achieving climate neutrality targets. However, its effectiveness will greatly rely on the new requirements with appropriate relevance for products levels in delegated acts and overall coherence of related legislation. Driving the transition to more sustainable products requires also the creation of lead markets, as well as incentivising them to keep the pace and motivate others, whilst harnessing the current potential from industry. The steel sector is looking forward to cooperating with the European Parliament and the European Council for enhancing the current text.
The full text of the position paper on the Ecodesign for Sustainable Products Regulation is available below.
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Brussels, 05 June 2025 – The high level of uncertainty and major disruptions caused by the new U.S. tariffs have dealt a severe blow to recovery expectations in the steel market for 2025. Against the backdrop of broader economic resilience driven by services, industry remains weak, weighing on steel demand and consumption. Recovery is not expected before 2026, and only if positive developments emerge in the global geoeconomic outlook. According to EUROFER’s latest Economic and Steel Market Outlook, the recession in apparent steel consumption will continue in 2025 (-0.9%) for the fourth consecutive year (-1.1% in 2024), contrary to earlier forecasts of growth (+2.2%). A similar trend is expected for steel-using sectors, with another recession in 2025 (-0.5%, after -3.7% in 2024) instead of a projected recovery (+1.6%). Steel imports remained at historically high levels (27%) throughout 2024.
Second quarter 2025 report. Data up to, and including, fourth quarter 2024
Brussels, 4 June 2025 – With U.S. blanket tariffs now raised to 50%, the only way to avoid the further erosion of the European steel market and another blow to European steelmakers is the swift implementation of the “highly effective trade measure” promised by the European Commission in its Steel and Metals Action Plan. A negotiated solution between the EU and the U.S. is also vital to preserve EU steel exports to the U.S., warns the European Steel Association.