UPDATE: EU steel safeguard measures clear Parliament

The European Parliament has approved the new regulation to restrict steel imports into the European Union, following the provisional agreement it reached with the Council in April, according to the Parliament's latest news release on May 19.

The regulation, which will replace the current EU steel safeguard measures expiring on June 30, will cut import quotas to 18.3 million tonnes annually, significantly down 47% from the 2024 levels, and a 50% customs duty instead of the current 25% will be applied to imports above the quota and to steel goods not covered by it, as Mysteel Global reported.

It also introduces a "melt and pour" rule to strengthen traceability of imported steel products and prevent circumvention, as reported. As part of the country-specific quota allocation, the EU will give special consideration to Ukraine, recognizing its status as a candidate country facing security challenges, according to the latest release.

With tougher restrictions on steel imports, the bloc will be better equipped to lift its steel capacity utilization rate from current lows of around 65% to a sustainable goal near 80%, according to industry analysts.

The regulation now awaits formal approval by the European Council, and once endorsed, it will enter into force on July 1 this year.

Written by Anthea Shi, shihui@mysteel.com

Edited by Alyssa Ren, Rentingting@mysteel.com