The new EU steel market protection rules, effective from today, are generally welcomed by the industry, but the way they were introduced has already drawn sharp criticism. Producers and distributors describe the measures as necessary, yet warn that announcing quotas at the last minute is causing chaos and raising cost risks.
For steelmakers, the new protection mechanisms are a long-awaited change, designed to help them navigate a deteriorating cost environment that has gradually pushed production to other continents. Distributors also support the move.
– The introduction of new market protection mechanisms is justified and understandable, as heavy reliance on imports from outside the EU poses a threat to supply security – says Piotr Sikorski, president of the Polish Union of Steel Distributors.
Complex system and last-minute confusion
– The mechanism, as is typical for the EU, is quite complicated, but I believe it will be effective. Effective, of course, in the sense of the steel industry’s interest – it means higher capacity utilisation in the EU, but also higher prices. Yet that will strengthen, or at least prevent the liquidation of an industry of strategic importance for EU security, and reinforce local content efforts – adds Henryk Orczykowski, president of Stalprofil.
Mirosław Motyka, president of the Chamber of Commerce and Industry for Metallurgy (HIPH), notes that the quotas for individual countries (EU 2026.1457) add an operational element to the new EU trade tool, published just a few days earlier. He stresses that this is not just another regulation but the start of a new trade reality for non-EU entities wanting to sell steel in the Union.
Piotr Sikorski, however, emphasises that this new beginning has been very poorly prepared.
– Data on quotas appeared at noon the day before they came into force, which is an extraordinary and highly disadvantageous situation for businesses, because the steel market operates on planning orders weeks or even months in advance. Introducing such changes overnight creates chaos and uncertainty. If it turns out that the country from which we ordered steel and are already expecting delivery is not included in the quotas, we will face the need to pay a 50% tariff, which radically changes the profitability of the transaction – warns the president of the Polish Union of Steel Distributors.
Ukraine’s case and future adjustments
The new border protection mechanism, based on quotas, is much more complex than the previous system. Previously, there were individual quota categories allowing clear determination of how much and from where could be imported. Now there is a division into own quotas and residual quotas, used on a competitive basis between member states, making it harder to predict available volumes. Additionally, the system is dual – it distinguishes between normal countries and those with free trade agreements, introducing further exceptions and complications.
The issue of Ukraine was a major point of contention during quota negotiations. Producers from that country sought free access to the EU market, while EU firms, especially Polish ones, considered it a serious threat.
– A preliminary analysis indicates that the European Commission adopted a balanced approach to setting quota levels for Ukraine. The regulation provides for individual allocations in a total of nine product categories, including hot-rolled sheet, reinforcing bars, wire rod, and seamless pipes. In addition, Ukrainian producers will be able to apply for access to certain common pools of volumes set aside for countries with EU free trade agreements – assessed Mirosław Motyka.
Przemysław Sztuczkowski, president of Cognor, warns that excessive opening of the common market would discourage Ukrainian entities from supporting progress in accession negotiations, since they would already have market access without the reforms that every new member, including Poland, had to undergo with great effort.
Piotr Sikorski reminds that among the so-called third countries, Ukraine remains one of Poland’s most important steel trading partners. In 2025, Poland imported about 600,000 tonnes of sheet from Ukraine, while the new total quota for Ukraine’s imports into the EU is about 480,000 tonnes – less than Poland’s previous imports from that country. The decline in imports from Ukraine will therefore be significant and will have a real impact on the market.
The industry is also looking forward to the long-awaited Melt & Pour rule, which will indicate the place of steel production, but it will not apply until 1 October 2027. The Commission has until 31 August 2027 to determine what evidence will support the Melt & Pour declaration, and until 30 June 2028 to define the significance of using Melt & Pour data for calculating the limit of free amounts.
Annual quotas are divided into quarters, starting from 1 July this year. Regulations allow for the possibility of transferring unused quarterly quota to the next quarter in the first year. A formal review of the system’s operation and effectiveness is to take place before the end of June 2029, and then repeated every two years. Piotr Sikorski hopes that changes will be introduced sooner, possibly by mid-2026, especially to extend quotas to other product groups, particularly downstream products that are not currently protected.
– We already have this steel protection, it is really intensive and covered, but downstream products are missing – said Piotr Sikorski.
Źródło: WNP.PL, Fot. Ievgen Postovyk / Shutterstock
