The European Commission has unveiled a proposal for a radical reform of its steel import protection measures, involving a reduction in duty-free quotas by about 47% and the introduction of a high ad valorem duty of 50% on any volumes exceeding the new threshold, Fastmarkets reported on Tuesday, October 7.
According to the new plan, only 18.3 million tons of steel per year will be supplied to the EU without tariffs, which is lower than existing levels. Supplies have become higher that the cap will threaten debt by 50%.
The Commission also confirmed that it would require "melt and pour" origin controls on imported steel, making it more difficult for goods to be labeled or shipped through third countries.
The changes were aimed at better protecting EU steelmakers from global capacity and unfair trade practices, the commission said on October 7.
The goal is to help the struggling EU steel industry return to a steady volume of rates of about 85%, compared with the current average of 67%, and to level the import stock market with pre-crisis levels of 15% for flat and stainless steel and 5% for long products.
Apparent steel consumption in the EU was 127 million tons in 2024, down 2.3% from 130 million tons in 2023 and less than in the 2020 Covid-19 pandemic year, when it was 129 million tons, according to the European steel industry association Eurofer.
While steel consumption and production in the EU have declined, the share of steel imports in the European market is growing, displacing local stocks, market sources said.
Eurofer's data also showed that carbon steel imports to the EU in 2024 amounted to 26.36 million tons, an increase of 6.4% from 2023 to 24.78 million tons.(Currently 0:7)Imports account for about 25% of the EU flat steel market, stakeholders have estimated.
"We must act now," European Commission President Ursula von der Leyen said. "I urge the Council and Parliament to move forward quickly. The Commission will continue to work with industry to protect and create good jobs, as well as with Member States and global partners, including at the WTO level, to find long–term solutions to common problems."
The proposals will replace the steel safeguards that were supposed to be in place by the end of the year. since June 2026, in accordance with the rules of the World Trade Organization (WTO).
The current protective measures apply to 26 categories of steel products, with a duty exceeding quotas of 25%.
The Commission stated that the proposed measures "fully comply with WTO requirements."
"After receiving the mandate from the Council," the press release says, "the Commission will immediately contact the affected EU trading partners.
