European Commission consultation on steel trade measures finds local industry favors TRQs
The Commission launched the consultation on trade measures on July 18 to address the negative trade-related effects of global excess capacity on the EU steel sector.
The consultation attracted 143 submissions, with the great majority from European companies and associations supporting long-term measures based on tariff-rate quotas (TRQs), Fastmarkets understands.
Several comments received in feedback have been published on the Commission’s website.
“The [European Steel Processors Association] believes that a well-calibrated TRQ system, combined with robust anti-circumvention measures and traceability protocols, offers the most effective solution,” ESPA (Belgium) said in its response.
“A new trade measure in the form of TRQs would not necessarily introduce new or additional administrative burden for downstream users following 8 years of safeguard TRQs,” European steel industry association Eurofer said in its feedback.
Regional steel associations including UNESID, Italy’s Federacciai, German steel association WV Stahl and Polish Steel association HIPH also supported TRQ measures.
European steelmakers SSAB, Hydnum, Arvedi, Dillinger, Celsa, ArcelorMittal, Tata Steel and others also spoke in favor of TRQ-based measures.
ArcelorMittal and Tata Steel also both advocated for a 50% tariff on out-of-quota steel deliveries, matching the current steel tariffs imposed by the US.
Switzerland-based companies, including Swiss Steel Holding (Swiss Steel Group) (Switzerland), supported the measures, but urged the Commission to exclude Swiss companies from the scope of new measures due to their “deep integration into European value chains.”
By contrast, non-EU stakeholders raised concerns.
The government of Japan urged the EU to “cautiously consider the consistency of the measure with the international disciplines, including the [World Trade Organization] Agreement.”
South Korea’s Posco International warned that “abrupt introduction of TRQs or additional duties may adversely affect steel procurement processes and impede major projects,” and recommended implementation only after the current safeguard measures expire in mid-2026.
The Commission was expected to propose long-term TRQ-based measures in the third quarter of 2025, to replacing the current safeguards from July 1, 2026, and to provide equivalent protection against global overcapacity.
Trade sources that spoke to Fastmarkets believed that the new measures would most likely come into force sooner than July 2026, with one mill source saying: “The idea is for the new measures to be implemented as of January 2026.”
Trump administration adds to Section 232 steel-derivatives list
The US has identified more downstream manufactured products that will be subject to Section 232 tariffs on imports of steel or aluminium derivative goods, Kallanish learns from the Federal Register.
Effective Monday, the US Department of Commerce added 407 codes to the Harmonized Tariff Schedule of the US (HTSUS) list of derivative products. The steel and aluminium portions are subject to the Section 232 tariff rate, whilst the non-steel and non-aluminium content will be subject to a reciprocal tariff rate. The steel content in the imports will be charged a 50% tariff.
US domestic steel interests applaud the development by President Donald Trump’s administration.
“The Steel Manufacturers Association (SMA) congratulates President Trump and the Department of Commerce on a robust inclusions process identifying additional steel-containing products to be covered by the steel tariffs,” SMA president Philip K. Bell comments in a statement Monday. “The steel tariffs are necessary for the national security that a strong steel industry provides.”
Ohio-based steelmaker Cleveland-Cliffs notes the inclusion of electrical steel laminations and cores, as well as certain stainless steel automotive exhaust parts to the list of derivative products.
“Cleveland-Cliffs thanks President Donald Trump and Secretary of Commerce Howard Lutnick for taking decisive and concrete action that will deter tariff circumvention occurring in plain sight with stainless and electrical steel derivative products,” Cliffs president and chief executive Lourenco Goncalves says in a press release. “Since we acquired AK Steel Corporation a few years ago, we have identified and denounced circumvention schemes through Mexico and Canada involving derivative products using steel melted and poured outside of North America. This practice, which has been accepted and supported by both Canada and Mexico — despite its inherent conflict with the original intent of the USMCA trade agreement — has ultimately turned into a blatant tariff evasion subterfuge.”
The Cliffs ceo adds that the new measures provide certainty that the American domestic market will not be undercut by unfairly traded steel within the derivative products. This allows the company to continue investment in its stainless steel and electrical steel operations.
The American Iron and Steel Association (AISI) also credits the Trump administration’s efforts, emphasising military readiness.
“A healthy domestic steel industry is vital to our national defence,” states AISI president and chief executive Kevin Dempsey. “The Section 232 program recognises that steel is essential for military equipment, critical infrastructure and emergency response needs. Strengthening these tariffs helps ensure that America is not reliant on foreign imports in times of national security threats and crises.”
Six months ago, the Trump administration began compiling derivative steel items to add to Section 232 tariffs because of increased imports of certain articles that depressed demand for goods produced by domestic steel mills. Examples include welded angles, shapes and sections of iron or steel; bridges and bridge sections of iron or steel; grill, netting and fencing of iron or steel wire; parts for agricultural, horticultural or forestry machinery; modular building units of steel, and prefabricated buildings.
John Isaacson USA
CBAM autumn pricing influence questionable, says consultant
The assumption that the Carbon Border Adjustment Mechanism (CBAM) will deter importers from buying overseas, leading to a European domestic price recovery, could be overstated, warns German consultant Andreas Schneider.
“The EU’s increasingly protectionist course is likely to lead to lower imports in conjunction with CBAM,” he concedes. But “how quickly and to what extent this will be felt on the market is difficult to predict.”
The overall picture is made up of international price discrepancies, exchange rates, demand in the EU and other EU import duties or quantity restrictions, he finds.
“Recent weeks in particular have shown that even high EU import duties can be at least partially offset by favourable exchange rates and significant price advantages offered by third-country suppliers,” he argues. He also warns that imports could be ordered in excess of actual demand in the short term, to avoid CBAM costs. “It is therefore difficult to predict the extent to which CBAM will divert some of the demand for imports to EU plants,” he notes.
On the European domestic coil market, mills have hiked prices twice in quick succession, aiming to prepare the market for higher transaction prices. Hot rolled coil deal values have since inched above the bottom line of €550/tonne ($642) ex-works, but remained way below the €600/t envisaged by some mills.
According to a Dutch observer, prices for hot-dip galvanised coil are also showing a slight increase, with the level now at around €655/t ex-works for delivery in September to October.
Paid prices could even be higher, for HDG as well as for cold rolled coil, a German buyer says. He finds the two are nearly identical in price these days. “While were are used to price gaps of €10-20 [between CRC and HDG], you will hardly see one at the moment,” he tells Kallanish.
A Scandinavian source notes he has not bought HDG lately, but supplies projects with larger volumes of CRC, for which he pays less than a premium of €100/t on top of HRC.
An Austrian manager also sees CRC values being lower than HDG, but adds he generally dismisses discussion about fluctuations in the CRC/HDG premium. “This is just very relative, subject to the mill’s respective energy cost structure at a given moment,” he asserts.
“I deal with mills that have kept their premium differentials for years,” he states, adding the price relativity is often just a matter of how suppliers define their bases. “Some mills have an €80 premium for CRC and ask for €30 more for HDG. Others charge €100+ for CRC, and ask for €10 more for HDG. In both cases, you end up with €110,” he notes.
Christian Koehl Germany
German steel industry is calling for comprehensive EU trade measures to address global overcapacity
The alliance comprises the chambers of Ostbrandenburg, Saarland, Braunschweig, Potsdam, Osnabrück–Emsland–Grafschaft Bentheim, Ostthüringen zu Gera, and Niederrheinische IHK Duisburg-Wesel-Kleve, collectively representing all steel-producing regions across Germany.
In its statement, the alliance affirmed its commitment to ensuring that steel production takes place under fair and comparable competitive conditions, free from unfair advantages derived from low environmental and safety standards or harmful subsidies. The European steel industry plays a critical role in industrial value chains and employment, supporting thousands of direct jobs and millions more indirectly. The alliance emphasized that Europe’s ecological transformation depends on a stable and fair market environment that enables long-term investments. The steel sector has significant potential to reduce CO₂ emissions, and its expertise can be exported to support decarbonisation processes globally.
According to the CCI-Steel Alliance, protecting the European steel industry from unfair global competition is not only an economic necessity but also a strategic imperative for Europe’s autonomy and green transition. The European steel sector is under unprecedented pressure, especially due to overcapacity originating from Asia. This has triggered a surge in low-cost imports, threatening the viability of domestic production. In regions with high steel output, this has translated into lower capacity utilization, declining competitiveness, and stagnation in green technology investments.
The alliance stressed the need for an effective trade defense mechanism to enhance the resilience of EU steel production and processing facilities against unfair practices. Proposed measures include the consistent penalization of unfair competition, the implementation of a Tariff Quota Regime (TQR), comprehensive quota setting for all steel products and countries of origin, and the introduction of additional duties for volumes exceeding quotas. Other key recommendations include the adoption of a “Melted & Poured” origin rule for greater transparency, the creation of a crisis mechanism to respond to short-term supply or demand shocks, quarterly quota allocations, and annual reviews.
Furthermore, the alliance urged the extension of protective measures to steel-intensive downstream sectors and called for the swift implementation of the European Commission’s Steel and Metals Action Plan. Additional recommendations include the formation of an EU-US “Metals Alliance,” improvements to the Carbon Border Adjustment Mechanism (CBAM), securing competitive energy prices and critical raw materials, and strengthening the Global Forum on Steel Excess Capacity (GFSEC). The alliance also underlined the strategic importance of steel for Europe’s autonomy, defense, and security.
The CCI-Steel Alliance expressed concern that the EU’s current trade defense instruments are insufficient. Unchecked global overcapacity continues to increase import pressure – particularly from Asia – while high U.S. tariffs are further exacerbating the situation. The alliance called on the EU to establish a robust and forward-looking trade defense tool, including strict import limits and clearly defined sanctions such as additional duties when quotas are exceeded.
The statement concluded by stressing that a strong domestic steel industry is essential to Europe’s strategic autonomy. Germany is the largest steel producer in the EU and ranks seventh globally. The sector directly employs over 80,000 people in Germany, while approximately 4 million workers are employed in steel-intensive industries. The steel industry also plays a systemic role in industrial resilience and defense and provides valuable training opportunities for young people.
To conclude, the alliance highlighted that low-emission steel is a key enabler of the green transition, with strategic relevance across sectors ranging from wind turbines to electric vehicles. A strong and sustainable European steel supply will reduce dependence on carbon-intensive imports and contribute to global decarbonisation efforts. The alliance reiterated its call for a comprehensive EU trade defense tool to safeguard Europe’s strategic autonomy, competitiveness, and green transformation goals.
Sudden tariff crisis on UK steel imports: Producers prepare lawsuit
The British Government’s sudden introduction of tariffs on imports of crude steel from Asia has triggered a major crisis in the sector. The Confederation of British Metalforming (CBM) emphasized that producers are facing high costs and delivery delays, and are preparing to file a lawsuit against the government.
Trade Secretary Jonathan Reynolds decided during the summer to reduce the amount of steel that could be imported duty-free from Vietnam and South Korea. Although the measure aimed to protect domestic producers from cheap imports, the fact that the sector was informed only 24 hours in advance sparked strong criticism.
The new regulation imposed a 25% customs duty on shipments that had already been paid for, leaving thousands of tons of steel waiting at UK ports. The CBM described the situation as a “tsunami of problems, with rising costs and logistical issues.”
According to The Guardian, Paul Whitehouse, Managing Director of Steel & Alloy Gonvarri Industries near Birmingham, stated that the additional tariffs would cost his company more than GBP 500,000: “We operate on very small margins. In a sector where profits are at 1-2%, this additional burden is a heavy blow.”
The measure came at a time when major producers like Tata Steel and British Steel were already facing difficulties. The sector was already searching for new markets due to a decrease in demand from the automotive and construction industries.
While the government defends its decision by saying it was based on the recommendations of the Trade Remedies Authority (TRA), the CBM has expressed that the policy was harsher than anticipated. The TRA had recommended that the duty-free import quota be limited to 40%, but Reynolds immediately implemented the decision and reduced the quota to 15%.
Stephen Morley, President of the CBM, stated that the accumulation of steel at the ports has led to additional costs and logistical bottlenecks, creating a “domino effect.”
Industry representatives support protecting domestic production but emphasized that the sudden implementation of the policy has put firms in an even more difficult position. It has been reported that CBM members have begun raising funds for a judicial review of the decision.
German car production rises 9% in July
Passenger car production at German assembly lines reached a volume of 347,100 units in July, 9% higher than in the same month last year, according to automotive association VDA.
This continues a gentle year-on-year upward trend, Kallanish notes. The first half year, January through June, saw a 4% increase over the same period of 2024. Adding July, production in the first seven months of the year was 5% up y-on-y, totalling 2.5 million units.
However, compared to the pre-crisis year of 2019, year-to-date production of 2025 remains 12% lower.
VDA highlights the production figures for electric cars for H1 saw 864,000 electric cars were produced in Germany, marking a new production record.
The EV share of domestic car production amounts to 40% in H1, versus 30% in the same period last year. VDA continues to estimate that a total of around 1.7mn EVs will be manufactured in Germany this year.
The number of passenger car registrations in July rose by 11% to a volume of 264,800 units. In the seven months of the year, a total of 1,667,600 new passenger cars were registered, 2% fewer than in the previous year.
Christian Koehl Germany
End of steel monoculture proposed for Taranto mill
Acciaierie d’Italia (ADI), is to get a special commissioner to develop industry activities beyond steelmaking, according to a report by press agency Agenzia Nazionale Stampa Associata (ANSA).
The goal is to “escape the steel monoculture,” states the governor of the region of Puglia, Michele Emiliano. An agreement signed by representatives of the national government and regional authorities proposes a new commissioner to oversee the reindustrialisation of the vacant areas of the Taranto plant
“The 18,000 workers who work around the steelworks will need to find a place within a broad reconstruction of the economy and life of the city itself,” said Emiliano.
A call for expressions of interest will explore potential new production investments in the area, Kallanish reads in the report.
With a transition of the plant to DRI steelmaking, fewer workers will be required than traditional coal-fired production, and a strategy to protect workers will be necessary. The redundancies could be partially offset by the construction of the DRI hub for the pre-reduced heat required to power the new furnaces, ANSA writes.
Earlier this month, the Ministry of Enterprises and Made in Italy authorised the publication of a new tender – the so-called “Letter of Procedure II” – for the sale of ADI. The new tender makes decarbonisation of the Taranto site mandatory, not optional (see Kallanish 8 August). Binding offers must be submitted by 15 September, with the draft sale contract to be made available in the data room by 31 August.
Christian Koehl Germany
European steel HRC market quiet, interest in imports fades
The European domestic market for steel hot-rolled coil (HRC) was largely quiet on Monday August 18 with many market participants still on holiday.
Those who were present reported muted trading with most discussions focused on the future of protection measures, including the EU’s Carbon Border Adjustment Mechanism (CBAM) and various options for the evolution of safeguard measures.
A trading source said that customers preferred to book material produced in Europe despite the price being in general €20-30 ($23-35) per tonne higher compared with imports, to avoid any risks connected with uncertainty over the future of import trading.
He reported recent deals from several key producers in Northern Europe being done within the range of €570-580 ($665-677) per tonne ex-works, and a supplier from the Benelux area selling for less than €570 per tonne ex-works.
Offers in the region still varied within the range of €590-610 per tonne ex-works, according to market sources, with the upper end said to be unrealistic and the lower end not yet achieved in deals.
Fastmarkets’ calculation of the daily steel HRC index, domestic, exw Northern Europe, was €575.21 ($671.10) per tonne on August 18, up by €6.04 per tonne from €569.17 per tonne on August 15.
The Italian market was said to be still in a “deep sleep” due to traditional August holidays and maintenance periods.
The latest workable prices achieved in early August before summer break, were around €540 per tonne ex-works.
A mill source said that current target prices for September and October sales were €560-570 per tonne ex-works, but this has not yet been fixed in transactions and was more a target for the moment.
Fastmarkets’ daily steel HRC index, domestic, exw Italy, was €537.50 per tonne on August 18, stable from Friday.
US plans tariffs on steel and semiconductor chip imports
US President Donald Trump is planning to impose new tariffs on steel and semiconductor chip imports, according to media reports, a move that could further shake global trade already strained by US protectionist policies. The tariffs are expected to be announced at low rates initially that would rise sharply over time to encourage domestic production.
US President Donald Trump is planning to impose new tariffs on steel and semiconductor chip imports, according to media reports, a move that could further shake global trade already strained by US protectionist policies. The tariffs are expected to be announced at low rates initially that would rise sharply over time to encourage domestic production.
Tariffs aimed at boosting US manufacturing
- Trump explained that the new tariffs will be at lower rates at the start – giving companies time to adjust and expand US manufacturing capacity.
- Steep increases later – possibly reaching 100 percent or more on semiconductors.
Trump emphasized that exemptions would be granted to companies investing in US production.
Steel tariffs: building on earlier measures
The announcement comes after multiple rounds of tariff hikes on steel and aluminum. In February this year, Trump raised steel and aluminum tariffs to 25 percent, while in May the tariff rate on steel was doubled to 50 percent to further support domestic producers. It remains unclear whether the new announcement signals another increase on tariffs on metals or simply a continuation of current rates.
Impact on global trade
Trump’s tariff strategy has already disrupted global supply chains. Previous measures targeted nearly all foreign exports to the US, alongside sector-specific tariffs on steel, aluminum, and automotive products. With semiconductors at the heart of consumer electronics, AI systems, and industrial technology, the new tariffs could have wide-reaching effects on global markets.
Steel rebar prices strengthen in Northern Europe as mills revise extras
The fact that two mills in the region revised their costs for extras, amid increased production costs, was the key reason for the uptick in prices.
Extras normally remain stable for years, and are added to the base price, which is normally liquid. But the extras on rebar were increased this week by the two producers by €10-30 ($12-35) per tonne, depending on the diameter, according to documents seen be Fastmarkets.
The average extra cost on rebar in diameters 8-32mm was currently slightly above €272 per tonne, while the base price from both suppliers was said to be €370 per tonne. This would give a total of €642 ($749) per tonne as an initial effective offer price on a delivered basis, according to market sources.
Basic prices are normally negotiable, but some sources on the customers’ side said that the new asking prices were workable although no new bookings had been heard by the time of publication.
A seller source, meanwhile, estimated workable prices in Germany and Belgium at €630-635 per tonne delivered, versus €620-625 per tonne delivered at the end of July.
While prices from local producers within the region increased, most recent offers of Polish rebar into Germany were heard at €610-615 per tonne delivered. This was stable week on week, but up from €600-610 per tonne at the end of July.
The price for steel reinforcing bar (rebar), domestic, cpt Poland, trended consistently downward in July, with no supportive demand.
Consequently, Fastmarkets’ weekly assessment of the price for steel reinforcing bar (rebar), domestic, delivered Northern Europe, widened upward to €600-635 per tonne on August 13 from €600-630 per tonne on August 6.
No Italian rebar offers were heard in Northern Europe, nor in the domestic Italian sector, where most market participants were on holiday or taking a maintenance break.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Italy, was €570-610 per tonne on August 13, stable week on week.
But a North European source said that the rise in extras in the northern region could trigger a revision of extras by Italian mills after the holidays.