EU eyes new steel import rules to protect industry, support green shift

The European Commission reaffirmed its plans to impose fresh measures aimed at restricting steel imports from competing nations, as it looks to shield its domestic steel industry from an influx of shipments triggered by global overcapacity.

The plan, revealed by EC President Ursula von der Leyen on Sept. 10, represents the latest attempt by the EU to protect its steel sector from what officials view as unfair competition, particularly from countries with lower production costs or state subsidies.

"Global overcapacity is squeezing margins and leaving little incentive to pay a clean premium. This makes it harder for Europe's steel industry to invest in decarbonization," von der Leyen said in her speech to the European Parliament on Sept. 10.

The EU has certain safeguards in place to protect its steel industry, but in line with the World Trade Organization policy rules, these will not be extended beyond June 30, 2026.

The EU first imposed provisional steel safeguard measures in July 2018 to counter an import surge after the US imposed Section 232 tariffs, which allow the US to impose restrictions on trade imports.

The EU has extended these measures multiple times, most recently in June 2024, but these will remain in effect until June 2026.

"That is why the Commission will propose a new, long-term trade instrument to succeed the expiring steel safeguards. Europe will always remain open. We like competition. But we will always protect our industry from unfair competition," she said.

Von der Leyen's statement comes after the EC previously emphasized implementing new measures by the end of the third quarter of 2025, but so far, no action has been taken.

All the important steel associations in Europe have called for immediate action. This is a response to the struggle of European steelmakers, who are facing cheaper imports that have undercut domestic prices and threatened local production capacity.

Adding to the woes, the US' blanket 50% tariff on steel imports and a 15% tariff on most other products have weighed on the EU steel industry, which ships steel-intensive exports, such as machinery and vehicles.

Since 2018, the European steel industry has lost a staggering 30 million mt of steel in the EU and export markets, led by a global steel overcapacity, US tariffs, and a decline in steel demand from sectors that use EU steel.

"We welcome Commission President von der Leyen's attention to steel in today's State of the Union speech, and her commitment to propose measures to support our sector and Europe's clean manufacturing value chains," Axel Eggert, Director General of the European Steel Association, or EUROFER, said late in the day.

"Now we urgently await effective proposals, with trade as the first priority, to shield EU steelmakers from global overcapacity and unfair competition. As President von der Leyen rightly pointed out, we need a robust successor to the steel safeguards to prevent our market from collapsing under a flood of cheap, high-carbon imports," he said.

"The Steel and Metals Action Plan, or SMAP, unveiled last March, must be implemented in full -- without watering down the ambition of the Commission President and her College of Commissioners. This is essential to secure Europe's strategic autonomy and clean future -- which starts with a competitive steel industry, its manufacturing value chain, and quality jobs at home," Eggert concluded.

In her speech, von der Leyen also highlighted the importance of the automobile sector, which she called "a pillar of our economy and industry" and for which the EC is ready to "invest in small, affordable vehicles, both for the European market and also to meet the surge in global demand."

The automobile industry is a major steel-consuming industry.

The EC is proposing to work with industry on a new Small Affordable Cars initiative.

"I believe Europe should have its own E-car ... E for European -- built here in Europe, with European supply chains. Because we cannot let China and others conquer this market," she said.

Europe's electric car market share stood at 15.6% for January through July, but still far from where it needs to be at this point in the transition, according to the European Automobile Manufacturers Association.

Platts, part of S&P Global Energy, assessed domestic HRC in Northern Europe at Eur575/mt ex-works Ruhr, stable day over day, and in Southern Europe at Eur555/mt ex-works Italy, up Eur5 day over day.

Platts assessed imported HRC in Northern Europe at Eur485/mt CIF Antwerp, and in Southern Europe at Eur480/mt CIF Southern Europe, both stable day over day.