EUROFER Calls for 50% Reduction in EU Import Quotas to Protect Steel Industry
On January 10, 2025, the European Steel Association made a formal request to the European Commission to reduce import quotas on flat steel products by 50%. This proposal, filed as part of a review of safeguard measures, aims to rectify the current imbalance between EU domestic production and imports, which, according to EUROFER, is significantly skewed in favor of imported steel. The details of the request were publicly revealed on January 22, 2025, sparking discontent among importers but drawing support from European steel manufacturers.
Addressing Oversupply and Market Imbalance
EUROFER’s proposal stems from concerns about an oversupply of steel on the European market, which it claims has reached alarming levels. The association estimates that there is an excess of 8.75 million metric tons of steel entering the EU market, including:
• 4 million metric tons of hot rolled steel,
• 1.2 million metric tons of cold rolled steel,
• 2.8 million metric tons of galvanized steel.
This oversupply has created significant pressure on the prices of domestic steel, which negatively impacts European steel manufacturers. By cutting the quotas for imported flat steel products, EUROFER believes that a better balance can be achieved between domestic production and imports, allowing European steelmakers to thrive in a more controlled market.
Stricter Quotas and Anti-Dumping Measures
As part of its request, EUROFER has proposed several key measures aimed at tightening the importation of steel, particularly from China. These include:
• Individual Quotas for Chinese Steel: EUROFER has suggested setting specific import quotas for Chinese steel, irrespective of anti-dumping duties. This would address the issue of Chinese steel being processed in third-party countries and then re-exported to the EU, circumventing existing tariffs.
• Stronger Anti-Dumping Duties: EUROFER argues that the current anti-dumping duties of 25% are not sufficient to protect European steelmakers. The association proposes raising the average anti-dumping duty to 34%. Furthermore, it calls for stricter conditions across all steel categories, including:
o Reducing the limit for hot rolled steel imports to 7%.
o Limiting cold rolled steel imports to 10%.
o Extending the 15% limit for other countries to all steel products.
• Ending Rollover of Unused Quotas: EUROFER also advocates for the termination of the practice that allows unused quotas to be rolled over into subsequent years. This move would make the quota system more stringent and reduce the likelihood of surplus imports during periods of low demand.
Concerns Over Market Liberalization
EUROFER’s proposal highlights its stance against liberalizing import quotas, particularly in the final year of safeguard measures. The association insists that such measures would undermine the integrity of the safeguards, which are designed to protect European industries from harmful trade practices and unforeseen surges in imports.
Reactions from Importers and Industry Stakeholders
The proposed changes have faced considerable opposition from importers and distributors, who argue that these restrictions could disrupt supply chains and increase steel prices in the EU. Importers were particularly displeased with the shortened timeline for submitting comments on the proposal, which was extended by only three days despite earlier requests for a longer extension.
Importers fear that stricter quotas and higher anti-dumping duties could lead to higher steel prices, making the EU market less competitive. However, EUROFER maintains that these measures are crucial to ensuring the long-term survival of the European steel industry, which has been under increasing pressure from foreign imports, particularly from China.
The Need for Protective Measures in the European Steel Market
EUROFER's request underscores the ongoing challenges facing European steel manufacturers. Steel production is a critical industry within the EU, providing jobs and supporting a wide array of sectors such as construction, automotive, and manufacturing. However, the influx of cheap imports, particularly from countries with lower production costs and lax environmental standards, has placed considerable strain on domestic producers.
By reducing import quotas and tightening anti-dumping measures, EUROFER believes that the EU can protect its steel industry from unfair competition while encouraging investment in sustainable, high-quality production. As the global steel market continues to evolve, these safeguard measures are seen as essential for ensuring that European steelmakers remain competitive in an increasingly globalized trade environment.
