Outokumpu backs EU safeguard agreement and calls for strict origin rules

Outokumpu has welcomed the provisional agreement between the European Commission, Parliament and Council on new steel safeguard measures aimed at protecting the EU market from global overcapacity.

The regulation, expected to enter into force on July 1, 2026, will replace the current safeguard regime and introduces a revised tariff-rate quota system. Import quotas will be reduced by around 47% compared with 2024 levels, while out-of-quota imports will face a 50% duty.

Outokumpu said the new framework would help address ongoing challenges in the European steel market, including weak demand, rising import pressure and declining capacity utilisation.

Chief Executive Officer Kati ter Horst stated that the measures would “protect the European steel industry from global overcapacity, unfair competition and carbon leakage,” adding that while the company supports free trade, it “must be fair,” pointing to subsidised imports and circumvention practices.

Focus on circumvention and transparency

The company also supported the inclusion of the “melted and poured” principle in the regulation, which links steel origin to the country where it was first produced in liquid form. According to Outokumpu, this approach is key to preventing circumvention via further processing in third countries.

Ter Horst emphasized that origin verification should rely on established methods such as mill test certificates to ensure transparency and enforceability.

Controlled flexibility in quota management

Outokumpu further welcomed the planned approach to quota management. While unused quotas may be carried over between quarters during the first year, the European Commission will assess from the second year onwards whether such flexibility should be maintained for specific product categories.

The company also noted that the Commission will review within six months whether the scope of the regulation should be extended to additional steel products, including tubes, pipes, wire and forged bars.

Source and Photo: Outokumpu