If implemented by the EU, the “melted and poured” rule would mark a departure from existing trade flows, posing serious challenges for Turkish processors and global supply chains, Fabrizio Di Gianni said at this week’s EUROMETAL Steel Day and 10th YISAD Flat Steel Conference in Istanbul attended by Kallanish.
The EU is considering a shift to a “melted and poured” regime, where origin is linked to where the steel was first melted. In this case, steel melted in China and later transformed in Turkey would still be considered Chinese for trade defence purposes.
Traditionally, origin has been based on the last substantial transformation – for example, if Chinese hot rolled coil was processed in Turkey, the final product would be considered Turkish.
On the sidelines of the conference, a market participant said: “If this measure is implemented, targeting Chinese-origin inputs, it could reshape trade flows and force Turkish slab and HRC buyers to rethink their sourcing strategies. This could be the next black swan event – we need to watch closely, as it may come before year-end.”
The introduction of the “melted and poured” rule would aim to more accurately trace the true origin of steel products. While current anti-dumping and anti-subsidy measures apply to direct imports, they can be circumvented by routing semi-finished goods through third countries. These goods undergo further processing before being shipped to the EU, thereby avoiding trade duties.
The European Commission wants to close this loophole and strengthen trade defence tools. If applied, the new rule would remove the possibility of altering a product’s origin through minimal processing and provide clearer traceability. The goal is to ensure that duties apply based on the actual source of steel production – especially when that source benefits from non-market conditions and excess capacity that distort global trade.
Meanwhile, a trading source noted that with existing uncertainty over increasing global tariffs, anti-dumping measures, and EU tariff-rate quotas on finished steel, demand for semi-finished products like slab and billet is rising. “We’re preparing for increased semis intake into the EU,” the source said, noting that preference will likely shift towards electric arc furnace semis, especially with CBAM enforcement beginning in the EU in 2026.
