On the proposal for a regulation of the European Parliament and of the Council Addressing the negative trade-related effects of global overcapacity on the Union steel market
ITRE-AD-781230
Committee on Industry, Research and Energy · Rapporteur: Sofie Eriksson
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The committee opinion amends the proposed regulation on steel overcapacity, stressing the strategic importance of steel for the EU economy, security, and decarbonisation, and calling for urgent action to protect the sector.¶¶¶ It tightens rules on evidence of steel origin, extends the product scope to prevent circumvention, and shortens the review period to six months, with annual assessments thereafter.¶¶¶
Committee position. The committee proposes amendments to the proposed regulation to strengthen the protection of the EU steel industry, ensure fair quota management, and enhance transparency and traceability of steel imports.¶¶¶
Key points
- Steel is vital for the EU's economy, security, and decarbonisation; the EU must maintain a strong domestic steel base and protect it from unfair trade.¶¶
- Steel-producing towns and regions are important; the burden of decline has fallen on them, and they should be heard in preparatory work.¶¶¶
- The EU should cooperate with like-minded partners to ring-fence economies from global overcapacity, ensuring secure supply chains and market access.¶
- Decarbonisation should be combined with industrial, energy, and R&D policies to strengthen value chains and support quality jobs.¶
- Energy-intensive industries need support to decarbonise and electrify; steel production accounts for around 5% of EU greenhouse gas emissions.¶
- Steel is strategic for defence and aerospace; stable supply chains and domestic production are essential to avoid dependencies.¶
- The Commission should assess the necessity of measures for products under derogation from sanctions on Russia, given price gaps and increased market shares.¶
- Quota allocation reference period should be periodically updated to reflect trade flow evolution.¶
- Measures should prevent import concentration and stockpiling that exhaust quotas early, ensuring fair access for SMEs and foundries.¶
- Importers must provide verifiable evidence of melt and pour, including a mill certificate with heat number; the Commission shall set rules for authenticity and traceability.¶¶
- The Commission must consider the Union's security and defence policy when managing quotas and assessing product scope.¶¶
- The Commission is empowered to add product categories to prevent circumvention, and the delegation of power is for five years, tacitly extended unless opposed.¶¶
Who is affected
- EU steel producers and workers: the amendments aim to protect them from unfair competition and job losses.¶¶
- Steel-producing towns and regions: they are recognised as bearing the burden of decline and should be consulted.¶¶
- Importers of steel products: they must provide verifiable evidence of the steel's origin, including mill certificates.¶¶
- Downstream sectors, SMEs, and foundries: their interests are to be considered in quota management and product scope reviews.¶¶¶
Figures and deadlines
- around 5 % of the Union’s greenhouse gas emissions from steel production¶
- more than 30 million tons of production capacity lost since 2018¶
- 67% capacity utilisation rate in 2024
- around 30000 jobs lost since 2018
- 18 345 922 tons total annual tariff quota volume¶
- six months following adoption for first product scope assessment¶¶
- five years for delegation of power, tacitly extended¶
- 1 July 2031 for first evaluation of effectiveness¶