Assofermet demands pre-June contract 15% safeguard cap exemption

The revised safeguard measures announced by the European Commission pose a significant risk to EU steel users, warns Italian steel trade association Assofermet.

The Commission confirmed on Tuesday the extension of safeguards till 2026 and the imposition of a 15% cap per origin over the “other country” tariff-rate quota (TRQ) for hot rolled coil.

According to Assofermet, there will be an annual shortage of over 1.6 million tonnes of steel, leading to increased costs for steel importers and processors who will face a decline in competitiveness. The association has been advocating for a relaxation of safeguards and requested that contracts signed before 31 May 2024 should not be subject to the 15% cap.

“We believe that the steel purchased by this date should follow the rules under the Safeguard measures currently in place – it would not be fair to penalise trade deals that were concluded before the EU Commission’s notification to the WTO … These are contracts signed by operators in complete good faith, relying on the progressive liberalisation of the measure. On the contrary, the rule appears to be extremely worsening compared to current conditions: the liberalisation rate has even dropped to 1%,” Assofermet says in a note sent to Kallanish.

The association has also examined the safeguard and Carbon Border Adjustment Mechanism (CBAM) overlap for the first half of 2026. The two measures are overseen by different departments at the European Commission; therefore, the implementation of both measures may result in double taxation.

“We have informed the Ministry about the potential impact of safeguard and CBAM on the cost of steel, which will have a ripple effect on EU manufacturing and the overall economy,” Assofermet states. It aims to assist institutions by offering practical proposals to minimise the adverse effects on the sectors it represents.

Natalia Capra France