Yesterday, the European Commission brought forward a new proposal to reform its steel import safeguards. The plan would include cuts in tariff-free quotas by about 47% and 50% ad valorem duty on any volumes beyond the new threshold, sources told Fastmarkets on Tuesday October 7.
Additionally, the Commission will require “melt and pour” origin verification for imported steel, which makes it harder for goods to be relabeled or transshipped via third countries.
The proposal, pending the approval of the European Parliament and Council, is expected to take effect in mid-2026, when the existing safeguards are set to expire.
Some EU-based sources have welcomed the new proposal, with a distributor source telling Fastmarkets that the European Commission is “on its way to protect the steel industry,” which they said will also cause prices to “go up” in the future.
At the same time, other sources deemed proposed measures “unfair” and only taking into consideration interests of steelmakers.
“We have a whole steel processing industry, reliant on imports. Such severe quotas cuts is shocking,” a steel service center source in the region said.
Meanwhile, subdued demand and lack of clarity around the EU’s Carbon Border Adjustment Mechanism (CBAM) remain core challenges for the industry, sources said.
“News about CBAM and safeguards has shaken the market,” a trader source told Fastmarkets, who also said that policy changes have caused imports to come to a halt.
“Demand is extremely low,” a distributor source said. “However, no imports will cause domestic prices to increase,” they added.
Fastmarkets’ calculation of the daily steel hot-rolled coil index, domestic, exw Northern Europe was €578.75 ($674.39) per tonne on Wednesday, up by €3.75 per tonne from €575 per tonne on October 7.
The Northern European index increased by €3.75 per tonne week on week and by €1.67 per tonne month on month.
The Italian domestic hot-rolled coil market also remained quiet this week.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €545 per tonne on Tuesday, unchanged from the previous day.
But the Italian index decreased by €2.50 per tonne week on week and by €5.42 per tonne month on month.
“Importing has become a difficult activity, and I expect that [domestic] prices will start to go up slightly,” a trader source in Italy told Fastmarkets.
