IN LAGOS: Philippe Heeren, Brussels-based regulatory partner at Reed Smith, says that the EU’s proposed ‘melt-and-pour’ could potentially undermine the objectives of the new rules.
“Partner countries which do not contribute to global overcapacity should not be impacted by the measures,” Heeren tells Mining.com.au.
As previously reported, the European Commission’s melt-and-pour proposal serves as a transparency and traceability obligation. From 1 October 2026, importers will be required to provide evidence of the country of melt-and-pour, such as a mill test certification.
Heeren says the country of melt-and-pour is defined as the country where raw steel or iron is first produced in liquid form in a furnace and then cast into its primary solid state.
“Crucially, this information will not be used directly by importers to draw on quota,” he adds.
“Rather, the melt-and-pour data will enable the European Commission to establish country-specific quota amounts, though only from 1 October 2027 onwards. The data relevant for drawing on quota remains the country of origin, as determined under the EU’s non-preferential rules of origin set out in the Union Customs Code.”
Assessing the necessity
In April 2026, the European Parliament and council reached an agreement on the measure which 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.
Heeren says that the political compromise leaves “important room for change”.
“Within two years from the date of entry into force, the European Commission must assess whether it is necessary to designate the country of melt-and-pour as the basis for drawing on country-specific quota,” he explains.
“As iron or steel products are often processed beyond their country of melt-and-pour but prior to their entry into the EU, the country of origin and the country of melt-and-pour will often not align in practice.”
Europe’s steel industry has been facing trade-related challenges such as import pressures in terms of volume and price.
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.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock
