The European Commission has launched a targeted consultation to seek feedback from industry stakeholders on the product scope of its new Steel Regulation which came into force from July 1, it said in a statement July 30.
The consultation follows Article 12.1 of the framework regulation of June 17, which requires the Commission to assess the necessity of expanding the product coverage to the following categories:
- Tubes, pipes and hollow profiles, of cast iron
- Non-alloy and other alloy wire
- Stainless wire
- Non-alloy and other alloy forged bars
The Steel Regulation, which has cut overall tariff quota volumes by 47%, increased the out-of-quota duty rate to 50%, and introduced a melt-and-pour origin rule, is currently only applicable to 30 product categories. As a result, market participants have noted that this could lead to goods further down the value chain being imported into the EU quota-free, undermining the purpose of the regulation.
The consultation will run for eight weeks from July 28 to Sept. 28, with the Commission set to analyze submissions and finalize its product‑scope assessment by Dec. 31.
Domestic steel prices in Europe have increased since the new regulation came into operation, particularly after the country-specific quotas were published on June 30, as import availability has tightened significantly.
Platts, part of S&P Global Energy, last assessed domestic hot-rolled coil in Northern Europe July 29 at Eur715/mt ex-works Ruhr, up Eur35 since July 1. In Southern Europe, domestic HRC was last assessed at Eur705/mt ex-works Italy, also up Eur35 across the same period.
Price expectations are also bullish in the European steel market for Q4, when the true impact of the measures should be seen as participants are now able to adjust their trading strategies with at least some regulatory clarity.
Author: Riley Waters
