Protection of the steel industry: EU significantly reduces import quotas for steel

However, European steel association Eurofer said the rule change may only increase capacity utilization to 73 to 75 percent, compared to around 67 percent currently, given weak demand. EU steelmakers could probably produce around 15 million tonnes more, said Axel Eggert, director general of Eurofer. That corresponds to around half of what has been lost in recent years. To help the European steel industry, the measure may need to be extended to downstream sectors, such as companies that laminate steel or stamp sheet metal for cars, Eggert said.

Imports only from states with agreements

In the future, half of the import quotas will be reserved exclusively for imports from countries with which the EU has concluded free trade agreements – so they will be hit less hard. The other half is open to everyone. Many of these countries will now receive country-specific quotas that are proportional to what they have previously delivered to the EU.

A “significant number” of partners have provisionally agreed to these divisions, the commission said. She argues the rules are necessary to protect the European steel industry from overcapacity elsewhere in the world and from dumping practices. On Monday, the EU Commission held talks with Chinese Trade Minister Wang Wentao, who had also previously met with Federal Economics Minister Katherina Reiche.