EU approves new framework to protect steel industry against global overcapacity
Time:Wed, 10 Jun 2026 08:57:04 +0800
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According to a press release on June 8, 2026, the European Council has approved a new regulation to protect its domestic steel market from structural global overcapacity distortions, establishing a replacement for the existing safeguard measures expiring on June 30, 2026.
This updated legal structure aims to preserve fair competition and secure Europe's industrial foundation, green transition, and regional security.
Effective July 1, 2026, the framework revises the tariff-rate quota system by reducing import allowances and applying higher duties on volumes exceeding set limits. It allows economic operators to carry over unused quotas between quarters within a single year to maintain downstream supply stability.
Furthermore, a strict "melt and pour" tracking requirement will counter circumvention by identifying the original casting location of the steel. Besides, a reinforced review mechanism enables European authorities to modify these actions as global market conditions change.
