The European Council has adopted new rules to protect the EU steel market from the effects of global steel overcapacity, replacing the current steel safeguard measures that are set to expire on June 30, 2026.
The new framework, which will take effect on July 1, introduces a revised tariff-rate quota (TRQ) system, including reduced import quotas and higher duties on volumes exceeding those quotas. The measures are part of the EU’s Steel and Metals Action Plan aimed at supporting the bloc’s steel industry amid rising global oversupply.
The regulation also introduces a melt and pour requirement to improve traceability and help prevent circumvention of trade measures by identifying the country where steel was originally produced. In addition, the European Commission will have enhanced powers to review the effectiveness of the measures and propose adjustments in response to market developments.
The Council said the EU steel sector continues to face pressure from growing global overcapacity, which is projected to reach 721 mln tons by 2027, more than five times the EU’s annual steel consumption. The bloc said increasing imports, combined with trade restrictions in other markets, have contributed to low capacity utilization rates and weakened competitiveness for European producers.