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
