The European Commission has put forward a proposal to protect the EU steel sector from the unfair effects of global overcapacity. This is an important step towards ensuring the long-term viability of a strategically key sector.
The proposal maintains the principle of open trade and strengthens cooperation with global partners to address overcapacity by:
– limiting duty-free imports to 18.3 million tonnes per year (a 47% reduction compared to the 2024 steel quotas),
– doubling the level of duty above quota to 50% (compared to 25% under the safeguard measure) and
– strengthening the traceability of steel markets by introducing a “Melt and Pour” requirement to prevent circumvention of the rules.
“A strong, decarbonised steel sector is essential for the competitiveness, economic security and strategic autonomy of the European Union. Global overcapacity is damaging our industry. We must act now,” said European Commission President Ursula von der Leyen.
“The global overcapacity crisis is reaching a critical level – estimated to rise from 602 million tonnes in 2024 to 721 million tonnes in 2027, five times the EU’s annual consumption. In addition, third countries are closing their markets – increasing tariffs and introducing safeguard measures, while the EU market remains largely open and under strong import pressure. That is why the Commission is acting decisively – after extensive stakeholder consultation, the proposed regulation should help restore balance to the EU steel market,” said Maroš Šefčovič, Commissioner for Trade and Economic Security.
“We see the European Commission’s proposal to protect the EU steel industry from the unfair effects of global overcapacity as a positive and necessary step towards stabilising the industrial environment in Europe. This step is also called for by a number of our clients in the industry. We are aware that any restrictions on free trade are not an ideal solution, but in this situation we consider the protection of our own industry to be more important,” said Rastislav Podhorec, MBA, CEO of Eximbank