EU officially extends steel import safeguard measures by two years

The EU has officially extended its steel import safeguard measures for another two years until June 2026. This decision was made after 14 EU member states requested an investigation. The European Commission points out that the necessity of extending and adjusting safeguard measures is caused by a combination of multiple factors. Including: severe global steel overcapacity, a sharp increase in China's exports to third countries, especially Asia, leading to an increase in exports from these third countries to the European DC01EK steel Union, an increase in the number of trade remedies and other restrictions imposed by third countries, and a significant decrease in domestic demand in the European Union. This protective measure will take effect on July 1, 2024, but the European Commission can still review its implementation before June 30, 2026.

Since 2021, the inflow of imported steel from the European Union has even exceeded the level before the start of safeguard measures in 2018. Despite security measures, global DC01EK steel overcapacity increased by nearly 50 million tons from 2019 to 2023. In addition, according to data from the OECD, approximately 158 million tons of new production capacity will be put into use by 2026, while global steel demand is currently only increasing by about 36 million tons per year. According to EUROFER's data, the growth in EU imports is driven by the fastest growing steel production capacity in exporting countries, particularly in Southeast Asia, parts of the Middle East, and North Africa DC01EK steel.