The European Union’s new steel market safeguard mechanism will take effect on July 1, reducing the annual import quota to 18.3 million tonnes. The regulation primarily targets imports from outside the EU, including Russia, but Ukraine has voiced serious concerns over its potential consequences.
The revised system, approved by the European Commission, cuts the global steel import quota by 47% compared to the 2024 level and doubles the out-of-quota tariff to 50%. While the move is intended to protect the EU’s domestic steel industry from cheap imports, it also introduces a duty-free quota of only 713,000 tonnes per year for Ukrainian steel.
A blow to Ukraine’s steel industry
Ukraine exported 2.6 million tonnes of steel to the EU in 2025, far exceeding the proposed duty-free quota. According to Stanislav Zinchenko, CEO of the GMK Center, the new limit could have severe repercussions. – The introduction of a quota of 713 thousand tonnes could lead to an approximately threefold decline in steel production in Ukraine. It may result in the closure of three of the six blast furnaces currently operating in Ukraine – he said.
The EU market remains the only major export outlet for Ukrainian steel, which has been devastated by the war with Russia. The industry had already lost key facilities and access to Black Sea ports, making European trade routes vital for survival.
Poland’s stance and EU policy
Poland has been a vocal advocate for including Ukraine under the full scope of the new safeguard measures. The Ministry of Development and Technology confirmed in May that Warsaw had consistently called for ending the previous exemption that allowed Ukrainian steel to enter the EU without quotas. The European Commission incorporated this demand into its proposal, later confirmed by the Council of the EU and the European Parliament.
The ministry explained that the new regulation is significantly stricter than the current one: it sets a global quota of 18.3 million tonnes per year, reduces the volume by 47% compared to the 2024 quota, and doubles the out-of-quota tariff to 50%. These changes align with the demands of EU steelmakers, including those in Poland.
Ukrainian authorities and industry representatives are now urging Brussels to reconsider the quota level, warning that a drastic cut could cripple the country’s steel sector, which is already struggling to survive amid the ongoing war. The outcome of these negotiations will be closely watched by both European and global steel markets.
Źródło: WNP.PL, Fot. Shutterstock/Nordroden
