The Council of the European Union has formally adopted its negotiating mandate for a new regulation aimed at protecting the EU steel industry from global overcapacity and low-priced imports, marking a key step in strengthening EU trade defense tools.
Under the mandate, the Council supports a reinforced safeguard system based on tariff-rate quotas (TRQs), while tightening rules to prevent circumvention and sudden import surges. The Council confirmed that adjusted total quota volumes will be capped between 15.2 million mt and 22.2 million mt.
Several adjustments were introduced, including greater flexibility in quota administration, allowing unused volumes from one quarter to be carried over to the next within the same year. The Council also added safeguards to ensure that quota changes do not lead to substantial price increases that could harm downstream industries.
To strengthen traceability, the Council clarified the implementation of “melt and pour” requirements, under which:
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Importers must provide melt-and-pour origin evidence from October 1, 2026
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Within two years, the European Commission must assess whether country-specific quotas should be based on melt-and-pour origin, potentially leading to new legislation
The timeline for reviewing a possible extension of the regulation’s scope has been shortened to 18 months, with stakeholder consultations to begin by October 1, 2026. The first full market impact review will take place four years after entry into force, followed by reviews every two years.
VietnamSteel by Hoa Sen Group
