European downstream producers' associations have jointly raised serious concerns about the European Commission's proposal to expand and tighten steel safeguards to address global overcapacity.
While recognizing the need to support EU steel producers and counter market distortions associated with global excess capacity, the organizations argue that the proposed approach unduly isolates the EU steel market and fails to achieve a balanced outcome for industries that use steel.
The impact of tariffs is estimated at up to 9 billion euros
According to the joint statement, this proposal would lead to a significant reduction in overall import quotas while increasing out-of-quota tariffs by up to 50 percent.
Assuming import volumes remain broadly at recent levels, the downstream industry estimates that additional annual tariff costs could range from €5 billion to €9 billion. These costs will be borne by producers across a wide range of industrial value chains.
Rising steel prices are seen as a major threat
The European Commission's own analysis forecasts an average increase in EU steel prices of 3.25 percent. However, signatory associations warn that price increases could be significantly higher in certain product segments, potentially reaching 30 percent.
Such increases would weaken the competitiveness of both import-dependent producers and companies sourcing steel from the EU, especially in highly competitive global markets.
The “melt and Pour Causes Administrative Problems
Proposed Melt and Pour Law The pour rule has been flagged as another major problem. The associations say this requirement will significantly increase administrative complexity, especially for small and medium-sized enterprises.
They argue that compliance with this requirement will be impractical for low-value lots and called on policymakers to adopt a more gradual and workable implementation structure.
The associations also warned that tighter security measures could limit access to specialized and high-quality steel
