The European Union has announced proposed adjustments to the steel safeguard measures

On March 10, the European Union announced a series of proposed adjustments to its steel safeguard measures. This investigation, initiated by the European Commission on December 17, 2024, was aimed at addressing the severe situation faced by the EU steel industry, exacerbated by the increase in global overcapacity and the continuous decline in EU demand. The proposed changes include reducing the liberalization rate from 1% to 0.1%, in response to a 14% decrease in steel consumption since 2019 and the negative prospects of the global steel market. The EU also proposed to cut export volumes from major exporting countries, such as a reduction of about 23.7% in India's hot-rolled coil quota and a 14.4% cut in Turkey's. The European Commission also announced the cancellation of up to 65% of the reassigned export quotas from Russia and Belarus, which will affect the export volumes of hot-rolled coils, medium plates, wire rods, hollow sections, and seamless pipes.

Other suggestions include dividing first-category materials such as hot-rolled coils into two subcategories to further distinguish between high-value-added specialized materials (CN code 7212.60.00, new subcategory 1B) and general-purpose materials. Another change is the cancellation of remaining quota access for some products, affecting hot-rolled coils, cold-rolled coils, and hot-dip galvanized products.

Additionally, specific country ceilings have been introduced within the remaining quotas for certain key products. The ceiling for hot-rolled coils has been reduced from 15% to 13%, and the same applies to cold-rolled coils. Other new ceilings include 15% for commercial bars, 20% for automotive-grade hot-dip galvanized steel, tinplate, medium plates, and reinforcing bars, 25% for non-automotive-grade hot-dip galvanized steel, color-coated plates, and stainless steel bars, and 30% for electrical steel and certain types of pipes.

The European Commission also proposed to cancel the practice of carrying over unused quotas to the next period in categories where significant import pressure has been identified.