EU quota uncertainty to hit steel trade
Protectionist policies and regulatory uncertainty are creating significant challenges for global steel trade, particularly for exporters to Europe, Stemcor managing director Europe Julian Verden told delegates at Kallanish Asia Steel Markets in Kuala Lumpur last week.
Verden said the implementation of the EU’s Carbon Border Adjustment Mechanism and evolving tariff-rate quota system are creating uncertainty for steel exporters. Asian producers in particular remain unclear about their country-specific quota allocations, while delays in verification procedures are complicating compliance efforts. Although companies have begun engaging verifiers, EU importers will likely remain uncertain about the final cost implications until next year.
The uncertainty is already affecting trade flows, with EU steel imports expected to weaken in the third and fourth quarters, potentially placing financial strain on trading companies exposed to the market.
Verden also highlighted widening regional price disparities driven by protectionism. Steel prices in the US remain significantly higher than in Europe, with US hot-rolled coil trading above $1,200/tonne compared with around $800/t in Europe.
While tariffs may support domestic prices, European steelmakers risk losing global competitiveness due to higher costs and restrictions on exports. Value-added products could face a smaller impact from tariffs, though developing such markets requires additional investment, product adaptation and new customer relationships.
“TRQs, which are the quotas for Europe, are going to be 18 million tonnes starting on the 1st of July. The problem for countries all over the world, particularly in Asia, who have traditionally been significant importers into the EU, is that they don’t know what their individual country quotas are going to be,” Verden added.
Looking ahead, Verden warned the third quarter could prove particularly volatile for traders. Shipment delays linked to geopolitical tensions and disruptions in Gulf trade routes, combined with buying strategies aimed at securing larger quotas before new restrictions take effect, may result in severe financial pressures. Some trading companies could face unexpectedly high costs and losses during the period, potentially leading to “casualties” among market participants.
XSteel trading director Virgilio Lozano meanwhile told delegates that US protectionist policies continue to shape steel trade flows across the Americas. Section 232 tariffs have been raised from 25% to 50%, with the possibility of further increases, reinforcing barriers to imports; consequently, US mills have achieved 80% capacity utilisation.
At the same time, trade tensions persist with Latin America and Asia, while tariffs imposed by Mexico on non-FTA countries are redirecting Asian steel shipments towards other markets in the region. Lozano noted that Latin America remains a major destination for imported steel, with annual imports of around 80 million tonnes, creating opportunities for exporters as trade flows continue to shift.
Author: Burak Odabasi
EU reaffirms Russian slab imports phaseout by 2028
Some limited imports of Russian-origin steel products, notably slab, will continue until 30 September 2028 under transitional arrangements laid down in existing EU restrictive measures, Kallanish notes from a joint statement issued on 17 April by the European Parliament, Council and Commission.
To ensure progressive and steady diversification, these imports are capped by quotas with volumes decreasing annually. The institutions add that the relevant measures underpin a trajectory towards a complete phase-out of the remaining Russian steel imports by 30 September 2028.
Author: Elina Virchenko
EU Council backs stronger steel trade regime; derivatives review seen from 2027, quota carry-over confirmed
The agreement paves the way for a new regime that will apply to all non EU countries and confirms stricter rules for steel imports into the bloc once the existing safeguards expire.
Total TRQ volumes confirmed, no country-specific allocation yet
The draft document confirms total annual out-of-duty tariff rate quota volumes at 18,345,922 tonnes, “based on historical import penetration levels prior to the surge in global overcapacity,” according to the document.
The Commission will have the power to review and amend these volumes, however, will “ensure that their total value is neither lower than 14.4 million tonnes nor higher than 22.2 million tonnes,” the document reads.
For reference, total carbon steel imports to the EU in 2025 amounted to 28.5 million tonnes, up from 26.3 million tonnes in 2024, European Steel Association (EUROFER) data shows.
Product-specific quotas were also confirmed at the levels outlined in October 2025, but no country-specific quotas allocation have been detailed so far.
Because of the lack of clarity on country-specific quotas and on the Carbon Border Adjustment Mechanism (CBAM) costs for imports, buyers have recently been showing little interest in overseas material, Fastmarkets reported.
“Knowing the country-specific quota distribution is crucial for understanding the future import structure,” a buyer source in Italy said.
For hot-rolled coil, for example, the annual quota volumes will be set at 5,198,712 tonnes as of July 1, 2026. The imported volume of hot-rolled coil in 2025 totaled 9.5 million tonnes, according to Global Trade Tracker.
The new regime, unlike the existing safeguards, will apply to all non-EU countries, even those the bloc has free-trade agreements with or those benefiting from autonomous trade preferences.
Imports from European Economic Area countries – Norway, Iceland and Liechtenstein – will be exempt from the tariff quotas and out-of-quota duties under the new regime.
TRQ carry-overs confirmed for the first year
The tariff quotas will be administered on a quarterly basis, similarly to the existing safeguards.
For the first year of the new trade regime, from July 1, 2026 to June 30, 2027, import quotas that are not fully used in one quarter can be carried over to the next quarter to keep supply flexible and avoid disruptions.
But, after the first year, the EU may change this rule depending on how the market reacts, especially if there are signs of imbalance or disruption, Fastmarkets understands.
Steel derivatives could be added from 2027
As for steel derivatives, the Commission will assess the possibility of expanding the scope of safeguards downstream by June 2027.
“By 30 June 2027, the Commission should assess the necessity of amending the product scope, in particular with a view to determining whether it should also cover products that are made of, or contain, a significant amount of steel, including with priority downstream iron and steel products not covered by this Regulation,” the draft document reads. “The Commission should conduct further reviews of the product scope every two years, unless significant market disruptions or sudden changes in global trade patterns require an earlier assessment.”
The first consultation with relevant stakeholders on the product scope review is planned by July 1, 2026.
As Fastmarkets reported on April 14, EUROMETAL, the European federation of steel distributors, traders and service centers, launched a “call to action to safeguard the European steel and metals industry,” already supported by more than 400 signatories across the entire steel and metals sector, including national federations, distributors and steelmakers.
Industry stakeholders urged the Commission to include steel derivatives in the scope of the new trade regime from July 1, 2026 to close loopholes and protect steel processing and steel-based manufacturing.
“2027 is too late [to include derivatives], we should move faster,” a steel service-center source in Europe said.
“2027 [derivatives inclusion] will mean an inflationary insolvency rate this year and in 2027,” another source in the European processing industry added.
Melt and pour requirement retained
The document reconfirms the Commission’s “melt and pour” origin verification requirement for all covered imports.
Under the draft, the EU will require proof of the steel’s “melt and pour” origin, meaning the country where the steel was melted in a furnace and then cast into its first solid form. “Solid form” refers to the steel’s initial shape after cooling, such as a slab, billet, ingot or other early-stage block of steel.
In simple terms, it is the place where the steel first becomes a solid piece before any later rolling, coating, cutting or other processing. The rule is intended to stop steel made in certain countries from being relabeled after minor processing elsewhere.
“Importers should be required to provide evidence on the country of ‘melt and pour’, such as by means of a mill test certificate. Such a requirement would increase transparency in the domestic supply chain for steel imports and allow the Commission to obtain reliable information on the origin of steel imports into the Union,” the draft document reads
The European Commission is expected to adopt, by August 31, 2026, an implementing act specifying the evidence importers must provide to comply with the melt and pour requirement.
While intended to prevent circumvention, sources said the requirement could increase administrative complexity.
“It’s another layer of compliance that will slow down trade flows,” a re-roller source said.
Next steps
The European Parliament is expected to hold its first reading of the proposal in the week commencing May 18. If members of the European Parliament adopt the text as agreed with the Council, the latter would formally approve Parliament’s position, allowing the regulation to be adopted without further amendments under the ordinary legislative procedure.
Author: Julia Bolotova
EU announces new steel import quota volumes and implementation changes
The European Union has introduced the details of the new steel import regulations, including quota volumes, and made some changes regarding the implementation of the measures.
The new regulation aimed at addressing the negative trade-related effects of global overcapacity on its steel market, replacing the existing safeguard measures set to expire in June 2026 and set to enter into force on July 1, 2026.
Total quota set at 18.35 million mt and 50 percent tariff introduced
The regulation sets the total annual tariff-rate quota at 18,345,922 mt, while imports within the quota will remain duty-free, while volumes exceeding the quota will be subject to a 50 percent tariff, a sharp increase compared to the previous 25 percent safeguard duty.
This measure applies broadly to all third countries, including those with free trade agreements or preferential access, reinforcing the EU’s efforts to prevent trade diversion and protect domestic producers. However, imports originating from Norway, Iceland and Liechtenstein are excluded from the scope of the measure.
The European Commission also retains the authority to expand the scope to include downstream steel products in future reviews.
Quarterly quota management and flexibility mechanisms
The tariff-rate quotas will be administered on a quarterly basis, aiming to prevent import surges within short periods. During the first year of implementation, unused quotas will be carried over to subsequent quarters. However, the commission may later adjust this rule depending on market conditions, including import pressure and supply shortages.
Future reviews
The European Commission will:
- review the product scope regularly,
- assess the effectiveness of the measure every three years,
- potentially adjust quota volumes within a range of 14.4-22.2 million mt depending on market developments.
Annual volumes of tariff rate quotas for some steel products are listed below.
| Product category | Annual TRQ volume allocated (mt) |
| HRC | 5,198,712 |
| Metallic Coated Sheets (4A) | 1,620,686 |
| Metallic Coated Sheets (4B) | 1,238,995 |
| Organic Coated Sheets | 627,871 |
| Merchant Bars and Light Sections | 881,735 |
| Rebars | 844,526 |
| Wire Rod | 1,569,532 |
| Hollow sections | 499,493 |
| Large welded tubes (25A) | 28,749 |
| Large welded tubes (25B) | 83,616 |
EU to fully phase out Russian steel imports by 2028
In a joint statement, the European Parliament, the Council and the European Commission underlined that the EU has taken unprecedented steps since the start of the war to reduce its economic dependence on Russia and prevent its economic activity from supporting Russia’s war efforts.
However, the institutions acknowledged that some dependencies still remain, particularly for certain steel products that are not yet fully restricted. Limited volumes of Russian steel imports are therefore still permitted under transitional arrangements until September 30, 2028, with quotas that decrease annually. The EU confirmed that these measures are designed to ensure a complete phase-out of remaining Russian steel imports, especially steel slabs, by the 2028 deadline.
Author: SteelOrbis Editorial Team
CarbonChain: Default emission values could double or triple CBAM costs
Speaking at the second session of the SteelOrbis 2026 Spring Conference & 94th IREPAS Meeting, Jack Laing, carbon specialist at UK-based carbon accounting platform CarbonChain, made a presentation regarding the EU Carbon Border Adjustment Mechanism (CBAM).
Mr. Laing stated that the definitive phase of CBAM, which began on January 1, 2026, has transformed the mechanism from a reporting exercise into a financial mechanism for importers. CBAM costs are now actively accruing, and importers must account for these costs throughout 2026, as failure to do so shifts the financial burden elsewhere in the supply chain.
Default values significantly increase costs
The CarbonChain official highlighted a key element which is the significant cost difference between default values and verified actual emissions data. Default values, which are based on EU-published average emissions by product (CN code), production route and country, are designed to be often punitive. He stated that the gap between default and actual emissions can reach two to four times higher costs, particularly for products sourced from countries such as China, India and South Africa.
The CBAM cost mechanism is structured to mirror the EU Emissions Trading System (ETS), with the objective of ensuring a level playing field. Emissions above benchmark levels are fully subject to CBAM charges, and benchmarks decrease annually in line with the phase-out of free ETS allowances. As a result, cost exposure begins from the first year and increases overtime.
He provided an example that showed a steel re-roller installation with an emissions intensity of 1.343 tCO₂/t compared to a benchmark of 0.782 tCO₂/t, resulting in a calculated cost of approximately €46.42 per ton, assuming an ETS price of €80/t.
Tight compliance timeline
Mr. Laing stated that the compliance timeline is clearly defined. For the 2026 monitoring year, operators must collect emissions data throughout the year, prepare emissions reports in the first quarter of 2027, and obtain third-party verification by the second quarter of 2027. Importers must begin purchasing CBAM certificates from February 1, 2027, with certificate prices based on the quarterly average ETS price. The final deadline for submitting CBAM declarations and surrendering certificates for 2026 emissions is September 30, 2027.
From 2027 onward, importers must comply with a quarterly obligation to hold CBAM certificates covering at least 50 percent of embedded emissions, increasing compliance complexity. He noted that no certificate purchases are required during 2026 due to transitional provisions, but financial obligations begin in 2027.
He also highlighted the distribution of responsibilities across the value chain. Producers are responsible for generating installation-level emissions data, while importers (declarants) are responsible for reporting and purchasing certificates. This creates a dependency, as importers rely on verified data from upstream producers, making verification capacity a potential bottleneck in 2027.
Uneven country-level impact
Country-level impacts vary significantly. Turkey, as the largest exporter of long products to the EU with an EAF-dominant production route, may benefit from relatively lower emissions intensity, though uncertainties remain regarding carbon pricing deductions. India faces complexity due to mixed production routes and precursor chains. Egypt and CIS countries are exposed to full CBAM costs due to the absence of recognized carbon pricing systems. China, with BF-BOF dominance and high coal dependency, shows some of the highest embedded emissions globally, while Vietnam faces exposure through growing EAF-based production using imported scrap.
CBAM is expected to expand to include indirect emissions (Scope 2), increasing cost exposure for electricity-intensive production. The product scope is projected to widen to downstream goods such as screws, tubes and wire products, potentially covering around 180 additional product categories and 7,500 importers by 2028.
Dual compliance with UK CBAM
Laing said that, in parallel, the UK CBAM is set to enter into force on January 1, 2027, introducing a separate regulatory framework and requiring dual compliance for exporters targeting both EU and UK markets. Key elements include sector coverage (iron and steel, aluminum, cement, fertilizers, hydrogen), a £50,000 annual threshold, and quarterly CBAM rates linked to the UK ETS.
He concluded that CBAM cost exposure is already material and increasing, with the difference between default and verified emissions data translating into millions of euros in potential cost impact. At the same time, upcoming regulatory changes, including scope expansion and verification requirements, are expected to increase compliance complexity across the steel value chain.
New car registrations in EU up four percent in Jan-Mar 2026
In March this year, new passenger car registrations in the EU increased by 12.5 percent year on year to 1.16 million units, according to the European association of car manufacturers ACEA.
In the given month, Germany (+16.0%), France (+12.9%), Spain (+11.7%) and Italy (+7.6%) reported positive results.
In the first three months of this year, new car registrations in the EU rose by four percent year on year to 2.82 million units. France (-2.1%) showed a negative performance. On the other hand, Italy (+9.2%), Spain (+7.6%) and Germany (+5.2%) posted an increase.
Author: SteelOrbis Editorial Team
SSAB supplies high-strength steel for Helsinki’s Kruunuvuori Bridge
Swedish specialty steelmaker SSAB has announced that it has supplied more than 3,000 mt of high-strength structural steel for the Kruunuvuori Bridge in Helsinki, one of the largest bridge projects ever undertaken in Finland.
The bridge structures are primarily built using SSAB Domex® high-strength steel, particularly the Domex 460ML grade, enabling lightweight yet highly durable construction designed to withstand harsh environmental conditions such as ice, snow, moisture and strong winds.
In total, around 6,300 mt of steel structures were used in the project, with SSAB accounting for over half of the supply.
The Kruunuvuori Bridge is approximately 1,200 meters long, with a central pylon rising 135 meters, making it the longest and tallest bridge in Finland. The bridge is designed primarily for pedestrians, cyclists and public transport, supporting Helsinki’s goals to reduce emissions and improve sustainable urban mobility.
Piles and foundation components also supplied
In addition to structural steel, SSAB supplied driven and drilled piles for the bridge foundations, totaling approximately 1,050 mt. The piles include diameters of 1,220 mm and 1,016 mm, with the longest drilled piles exceeding 40 meters in length and equipped with specially designed rock shoes.
Steel supports sustainability targets
According to the company, the use of high-strength steel contributed to material efficiency and reduced environmental impact through lighter structures and long service life.
SSAB stated that its steel has carbon emissions around 6% lower than the European average and up to 17 percent lower than the Chinese average, supporting the project’s climate objectives.
Author: SteelOrbis Editorial Team
European Parliament approves new GSP scheme for developing countries
Duferco Thionville to cease flat products trading operations at its Yutz site
EU’s 20th sanctions package further tightens restrictions on Russian steel-linked trade
The European Union has adopted its 20th sanctions package against Russia, introducing new trade, energy, finance and anti-circumvention measures aimed at weakening Russia’s war economy. For the steel sector, the most relevant measures include new restrictions on imports of certain metals, minerals and steel scrap, as well as expanded export bans covering articles made of steel and tools used in metal production.
According to the Council of the EU, the package restricts imports of goods that generate significant revenues for Russia, including certain raw materials, certain metals and minerals, scrap of steel and other metals, chemicals, vulcanized rubber articles and tanned fur skins. The total value of the new import restrictions exceeds €570 million.
The new measures build on earlier EU sanctions targeting Russian-origin iron and steel products, including products processed in third countries using Russian-origin iron or steel inputs. The package also strengthens anti-circumvention controls. For the first time, the EU activated its anti-circumvention tool, restricting exports of certain high-risk goods to Kyrgyzstan due to the risk of re-export to Russia. Although this measure mainly covers CNC machines and radio equipment, it is relevant to steel and machinery markets because CNC machines are widely used in metalworking and industrial production.
For steel market participants, the new package is expected to increase due diligence requirements, especially for scrap, semi-finished and processed metal products, metalworking tools and trade involving third countries. Importers and exporters will likely face closer checks on origin, routing, end-use and counterparties.
Overall, the package does not introduce a full new ban on all Russian steel products, as many restrictions were already in place. However, it expands the sanctions perimeter around Russia’s metals trade by targeting steel scrap, steel articles, metal production tools and possible circumvention routes.
From the steel sector’s perspective, the key CN codes in the package include 7204, covering iron and steel scrap; 7318, covering fasteners made of iron or steel; 7325, covering other cast articles of iron or steel; and 8209 and 8311, covering certain tools and materials used in metal production. In addition, CNC machines for metalworking, which the EU included in the scope of restrictions aimed at preventing the circumvention of sanctions, fall under code 8457 10.
Author: SteelOrbis Editorial Team