Tata Steel signs the non-binding Joint Letter of Intent with the Government of the Netherlands
Tata Steel and Tata Steel Nederland (TSN) have signed a non-binding Joint Letter of Intent (JLoI) with the Dutch government and the Province of North Holland, outlining a shared ambition to advance the first phase of an integrated project aimed at decarbonising the IJmuiden steelworks and improving public health and environmental quality in the surrounding region.
The JLoI defines the intent and objectives of all parties involved, but does not constitute a legally binding agreement regarding project implementation or the allocation of subsidies. However, it includes a commitment to negotiate in good faith toward a customised binding agreement.
These negotiations will continue over the coming months, including the period after the upcoming Dutch elections and the formation of a new government. Final investment approval will depend on internal processes at Tata Steel and the successful conclusion of the tailored agreement.
ArcelorMittal: EU’s proposal for stronger trade defense measures crucial for steel industry survival
Global steel giant ArcelorMittal has strongly endorsed the European Commission’s proposal to replace current EU safeguard measures with strengthened tariff quotas on steel imports. The company described the move as critical for the survival of Europe’s steel industry, which is facing mounting pressure from low-priced imports, shrinking demand, and weak economic conditions.
Commenting on the proposal, CEO Aditya Mittal said that he is sincerely relieved by the proposals that have been announced to support the European steel industry. He thanked the European Commission and the member states for understanding the criticality of the situation and acting appropriately and decisively. The European steel industry and manufacturing more broadly can have a much stronger future now and today marks a step in that direction, Mittal added.
Geert Van Poelvoorde, CEO of ArcelorMittal Europe, echoed these sentiments, noting that the proposal has brought a sense of relief across the European steel sector.
“ArcelorMittal and the European steel producers have been heard. Today, we can breathe a sigh of relief, with the European Commission’s announcement of the new, strengthened tariff quota proposal,” Van Poelvoorde stated, adding, “We thank the commissioners for the time and attention they have taken to understand the challenges facing our industry. We will continue to press for a swift introduction of the new tariff quota, in recognition of the severity of the challenges facing the steel industry in Europe.”
Link with CBAM and the Steel Action Plan
ArcelorMittal also stressed the importance of aligning trade defense instruments with climate policy, specifically the Carbon Border Adjustment Mechanism (CBAM), whose revised framework is expected by the end of 2025.
“We hope that the trade proposal unveiled today is an indication that our concerns will be reflected in the further measures to be announced in line with the Steel and Metals Action Plan,” Van Poelvoorde noted.
He said that his company believes that a strong tariff quota regime, combined with an effective CBAM, will be essential to restore a level playing field, curb market distortions, and support Europe’s steel competitiveness globally.
EU unveils quota volumes for new safeguard system
The European Commission has announced the details of its new safeguard system and unveiled the product quota volumes.
Accordingly, the new system maintains the principle of open trade and strengthens engagement with global partners to tackle overcapacity, by
- limiting tariff-free import volumes to 18.3 million mt a year (a reduction of 47 percent compared to the 2024 steel quotas),
- doubling the level of out-of-quota duty to 50 percent, compared to the 25 percent under the safeguard, and
- strengthening the traceability of steel markets by introducing a “Melt and Pour” requirement to prevent circumvention.
The quota volumes of various products can be seen in the table below.
| Products | New quota volume (mt) |
| HRC (1A) | 5,198,712 |
| CRC | 1,544,759 |
| Metallic Coated Sheets (4A) | 1,620,686 |
| Metallic Coated Sheets (4B) | 1,238,995 |
| Organic Coated Sheets | 627,871 |
| Quarto Plates | 1,196,903 |
| Merchant Bars and Light Sections | 881,735 |
| Rebars | 844,526 |
| Wire Rod | 1,569,532 |
Meanwhile, welcoming the new system, Axel Eggert, director general of the European Steel Association (EUROFER), said, “The ultimate objective of reducing unfair imports flooding the EU market is to allow our steel plants to operate again at a viable utilization rate of 80-85 percent. Currently, our facilities run at unsustainable utilization levels of around 65 percent, provoking closures and layoffs. One third of European steel demand is supplied by below-cost, high-carbon intensity imports. The measure also provides some of the visibility companies need to pursue their decarbonization investments.”
European HRC market remains cautious, digesting news about new import measures
Yesterday, the European Commission brought forward a new proposal to reform its steel import safeguards. The plan would include cuts in tariff-free quotas by about 47% and 50% ad valorem duty on any volumes beyond the new threshold, sources told Fastmarkets on Tuesday October 7.
Additionally, the Commission will require “melt and pour” origin verification for imported steel, which makes it harder for goods to be relabeled or transshipped via third countries.
The proposal, pending the approval of the European Parliament and Council, is expected to take effect in mid-2026, when the existing safeguards are set to expire.
Some EU-based sources have welcomed the new proposal, with a distributor source telling Fastmarkets that the European Commission is “on its way to protect the steel industry,” which they said will also cause prices to “go up” in the future.
At the same time, other sources deemed proposed measures “unfair” and only taking into consideration interests of steelmakers.
“We have a whole steel processing industry, reliant on imports. Such severe quotas cuts is shocking,” a steel service center source in the region said.
Meanwhile, subdued demand and lack of clarity around the EU’s Carbon Border Adjustment Mechanism (CBAM) remain core challenges for the industry, sources said.
“News about CBAM and safeguards has shaken the market,” a trader source told Fastmarkets, who also said that policy changes have caused imports to come to a halt.
“Demand is extremely low,” a distributor source said. “However, no imports will cause domestic prices to increase,” they added.
Fastmarkets’ calculation of the daily steel hot-rolled coil index, domestic, exw Northern Europe was €578.75 ($674.39) per tonne on Wednesday, up by €3.75 per tonne from €575 per tonne on October 7.
The Northern European index increased by €3.75 per tonne week on week and by €1.67 per tonne month on month.
The Italian domestic hot-rolled coil market also remained quiet this week.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €545 per tonne on Tuesday, unchanged from the previous day.
But the Italian index decreased by €2.50 per tonne week on week and by €5.42 per tonne month on month.
“Importing has become a difficult activity, and I expect that [domestic] prices will start to go up slightly,” a trader source in Italy told Fastmarkets.
