The European Parliament voted in favor of a new trade regime for steel sector, expected to replace current safeguard measures, Fastmarkets heard in the week begun Monday January 26.
The global steel safeguards in place since 2018 under the World Trade Organization (WTO) will expire on June 30 this year.
In October 2025, the European Commission unveiled a proposal for sweeping reform of its steel import safeguards, suggesting cuts in tariff-free quotas by about 47% and imposing a steep 50% ad valorem duty on any volumes beyond the new threshold.
On January 22, the European Parliament’s International Trade Committee (ITC) fully supported the proposal with 36 votes in favor and 2 against, with 5 abstention, a press release on the parliament’s website said.
The approved text proposes lower import quotas, capping tariff-free steel imports at 18.3 million tonnes per year, down by 47% from 2024 quota levels.
Imports exceeding the quota, as well as steel products not covered by it, would be subject to a 50% customs duty.
The changes were intended to better shield EU steelmakers from global overcapacity and unfair trade practices, the Commission said earlier.
The goal was to help the struggling EU steel sector return to sustainable capacity utilization rates near 85%, up from the current average of 67% and to align import market shares with pre-crisis levels of 15% for flat and stainless steel and 5% for long steel, Fastmarkets understands.
The ITC members stressed that the new rules must comply with WTO requirements and called on the European Commission to closely monitor their effects, including assessing whether the list of products covered should be amended.
In addition, the proposed legislation would prohibit all steel imports from Russia and Belarus, extending existing trade restrictions to explicitly include steel products from both countries.
The proposal specified that import calculations should exclude all steel imports originating from the Russian Federation and Belarus, because these are already subject to import bans.
Finished steel imports from the two countries have, in fact, been banned since 2022, following Russia’s invasion of Ukraine and Belarus’s support for Russia.
But semi-finished steel products from Russia, notably slab, were still allowed to enter the EU until September 30, 2028.
In October 2022, the EU imposed quota limits to last for two years on Russian semi-finished steel products, in response to Russia’s unprovoked invasion of Ukraine.
In December 2023, the quotas were extended until September 30, 2028, following a lobby campaign led by rerollers in Italy, Belgium and the Czech Republic.
A source, familiar with the matter suggested that, under the new regulation, Russian steel slab might be completely banned before the quota period expired.
“[There is a] 90% chance that Russian slab will be banned as of July 1,” the source said.
The proposal still must be approved by the European Council. The ITC has also approved a decision to start negotiations with the Council, with the intention of reaching a deal on the final form of the bill in the spring, according to the European Parliament’s release.
Market effects, next steps
The European Parliaments did not specify the exact timeline for new measures coming into force, but sources familiar with the matter told Fastmarkets that it was likely that the new regime would come into force after safeguards expired in July 2026.
For traders, steel processors, tubemakers and other stakeholders reliant on steel imports in Europe, the shift to a new regime will tighten supply for certain grades, pushing up prices for in-quota steel.
“We are already dealing with the Carbon Border Adjustment Mechanism [CBAM, which came fully came into force on January 1],” a German buyer said, “so imports are limited and [domestic steel] prices are rising. A new regime will cut import availability even more, which will be especially sensitive for cold-rolled and hot-dipped galvanized material.”
In a proposal seen by Fastmarkets, the quota for hot-rolled coil, category 1A, would be 5,198,712 tonnes per year. For reference, in 2025, the EU imported around 9.5 million tonnes of HRC, according to Global Trade Tracker statistics.
Domestic flat steel prices in Europe have been gradually increasing so far in January, mainly driven by CBAM.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was €655.83 ($784.92) per tonne on January 29, up by €0.83 per tonne from €655.00 per tonne the day before.
The index was up by €12.08 per tonne week on week and by €28.33 per tonne month on month.
