EC’s proposed safeguard to curb EU ferroalloy imports by 25%

The European Commission is proposing a three-year safeguard measure to reduce the EU's imports of four silicon- and manganese-based alloying elements by 25% compared to the inflows over the last three years, according to an official document seen by Platts.

Initially, the safeguard investigation launched in December 2024 concerned imports of six ferro-alloying elements: silicon, ferro-manganese, ferro-silicon, ferro-silico-manganese, ferro-silico-magnesium, calcium-silicon. But silicon and calcium-silicon were later excluded, given stable imports of silicon and the end of domestic production of calcium-silicon.

Set to take effect Nov. 18 and run through Nov. 17, 2028, the measures will comprise product-specific tariff-rate quotas, or TRQs, allocated by country and product. They are set 25% below the average import volumes of 2022-2024 to allow EU ferroalloy producers to restore their domestic market share to 30%-40%.

Imports within TRQs will continue to enter the EU duty-free, with out-of-quota volumes incurring a variable duty equal to the difference between the actual import price and the price threshold, which is established at Eur1,316/mt for ferro-manganese, Eur2,408 for ferro-silicon, Eur1,392 for ferro-silico-manganese, and Eur3,647 for ferro-silico-magnesium.

The safeguards have no mechanism to change the minimum price, but the duty-free quota volumes will increase by 0.1% annually on Nov. 18, 2026, and Nov. 18, 2027.

Euroalliages, the European association of ferro-alloys and silicon producers, urged EU member states to support the proposed measures in a Nov. 13 LinkedIn post.

"Without these safeguards, the European ferroalloy industry will not exist in five years. A united approach will protect jobs, strategic autonomy and Europe's ability to lead in innovation and security," Euroalliages said.

Ferroalloys are essential for producing high-quality steel used in tanks, ammunition, and drones. Specifically, silicon-based alloys are critical for semiconductors, navigation systems, wind turbines, and next-generation batteries, according to Euroalliages.

Sharp rise in imports

The Commission states that its safeguard action responds to a sharp rise in ferro-alloy imports, which, from 2021 onward, penetrated the EU at prices 5%-17% below those of domestic producers.

The key findings showed that imports of ferro-alloys covered by the investigation rose from 1.14 million mt in 2019 to 1.33 million in 2024. The 17% surge was linked to global overcapacity and trade diversion. In 2023, global ferro-alloy capacity reached 46 million mt, significantly exceeding the consumption of 27.6 million mt. Further expansion is expected to increase overcapacity to 27 million mt, equivalent to 16 times EU demand.

In addition, US trade defense measures as of March 2025 restricted ferro-silicon imports from Brazil, Kazakhstan, and Malaysia, diverting approximately 73,000 mt to the EU, the equivalent of about 21% of 2024 EU production.

Over 2019-2024, the period spanned by the investigation, the EU ferro-alloy industry experienced a sharp deterioration across most indicators: the union consumption declined 7%, domestic production and sales fell 50% and 41%, respectively, with capacity utilization down from 56% to 35%, which was also the result of a double-digit fall in EU exports.

Imports from Norway and Iceland (47% of 2024 total) were found to contribute to the injury, but Ukraine is excluded from the scope of the safeguard, as are imports from WTO developing members, provided their share is less than 3%. Some developing countries have exceeded that limit; therefore, the measure will apply to imports from Brazil, China, Georgia, India, Malaysia, South Africa, Thailand, and Zambia.

Platts assessed standard ferrosilicon, ferromanganese, and silicomanganese prices Nov. 12 at Eur1,215/mt, Eur937.5/mt, and Eur955/mt, respectively, on a DDP Northwestern Europe basis, flat week over week. A trader said that "people stopped offering" material ahead of the EC safeguard announcement.

The announcement was initially expected by Aug. 18, which prompted ferrosilicon and ferromanganese prices to rise sharply to their Eur1,600/mt and Eur1,125/mt peaks on Aug. 20, up 65% and 16.5% from their respective levels at the end of July.