IN LONDON: The European Parliament and council have reached an agreement on the measure to protect the EU steelmaking sector against global overcapacity.
The new measure sets tariff-free quotas at 18.3 million tonnes per year, with an out-of-quota duty set at 50% for 30 categories of steel products imported into the EU. It also introduces a ‘melt-and-pour’ requirement to improve traceability and transparency of the EU steel supply chain.
As Mining.com.au reported, the melt-and-pour measure serves as a transparency and obligation. Under this measure, importers are required to identify the countries where steel was originally melted and poured.
The European Commission says the measure will apply to imported products from all countries, except for EEA countries — the latter will be subject to melt-and-pour requirements.
As a result, the negative trade-related effects of global steel overcapacity will be addressed, which is projected to reach 721 million tonnes by 2027. This figure represents more than five times more than the EU’s annual steel consumption.
The measure will also shield 2.5 million jobs linked to steel production and support the EU’s decarbonisation goals.
Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy, says the steel industry has been at the foundation of the EU.
“There is no prosperous Europe without a sustainable, strong, and sovereign steel industry,” Séjourné says.
“In this strategic sector, like many others, we will do whatever it takes to maintain production, jobs, and skills alive in our continent.”
Maroš Šefčovič, Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency, adds that the outcome helps bring stability for producers to thrive in Europe.
“I welcome the shared urgency of the co-legislators to turn our proposal into action, as we also continue engaging with partners worldwide,” Šefčovič says.
EU’s steel sector
According to the European Parliament, the continent’s steel industry has been facing trade-related challenges, including significant and sustained import pressure in terms of volume and price.
The global steel safeguards that have been in place since 2018 under the WTO Agreement on Safeguards will expire on 30 June 2026.
Earlier this year, new data from Eurostat revealed that EU steel exports to the US fell by 30% in H2 2025, compared to the same period the previous year, as reported.
Europe’s steel association Eurofer says these figures outline the need for EU-US trade agreements to be fair, balanced, and enforceable.
Director General Axel Eggert said that the 30% decline is an indication that the 50% tariffs imposed by the US Government is damaging for the industry.
“The US decision to include EU downstream steel products, such as machinery, will have another huge negative impact on us and our European customers,” Eggert says.
“Commitments on tariffs must translate into real and balanced market conditions for industry on both sides of the Atlantic. But so far, we are still waiting to hear whether the arrangement will secure meaningful EU steel access to the US market or a joint response to global steel overcapacity.”
Write to Aaliyah Rogan at Mining.com.au
Images: Unsplash
