EU adopts new steel trade defence framework as market remains quiet

The European Council has formally adopted a new steel trade defence regime that will take effect on 1 July, replacing the existing safeguard measures. The regulation introduces a revised tariff‑rate quota system with lower import quotas and higher duties on excess imports, adds a “melt‑and‑pour” requirement to trace the origin of steel, and allows unused quotas to be carried over during the first year. It also sets up a strengthened review mechanism for the European Commission to monitor market developments and adjust the measures as needed. The framework is aimed at protecting the EU steel industry from persistent global overcapacity, projected to reach 721 million tonnes by 2027, and to reduce dependence on Russian steel imports.

At the same time, the European domestic market for hot‑rolled coil steel stayed subdued on 9 June, with high inventories and uncertainty over the upcoming safeguards causing buyers to postpone new deals. Prices were reported around €670‑685 per tonne ex‑works, well below the €700‑730 target range, and trade activity was limited across Northern Europe and Italy. Traders cited the well‑stocked market and pending price adjustments expected between mid‑July and early August as reasons for the quiet trading day.