EU steel regulation affects recycling markets

The BIR has commented on the Council of the European Union's formal adoption of a new framework regulation for the European steel market.

EU steel regulation affects recycling markets
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The EU steel regulation forms part of the Steel and Metals Action Plan published in 2025 and will enter into force on 1 July 2026 after the current EU steel safeguard measure expires on 30 June 2026.

Implications for recycled steel markets

BIR notes that measures affecting steel imports may also influence markets for secondary raw materials. Recycled steel remains a globally traded commodity and serves as a key feedstock for circular steel production, particularly in electric arc furnace steelmaking.

According to BIR, changes to import conditions, tariff-rate quotas or origin verification requirements could affect international trade flows and commercial operations throughout the steel recycling value chain.

Revised quota system

The EU steel regulation introduces a revised tariff-rate quota system. Annual duty-free quota volumes will total 18.3 million tonnes, representing a reduction of around 47 per cent compared with safeguard quota levels in 2024.

Imports exceeding the allocated quota will face an out-of-quota duty of 50 per cent. Under the previous safeguard regime, the corresponding duty rate was 25 per cent.

New origin verification requirements

The regulation also introduces a “melt and pour” origin requirement. The measure aims to improve transparency by identifying the country in which steel was first melted and poured.

The European Commission is expected to adopt an implementing act by 31 August 2026 that will define the evidence importers must provide to demonstrate compliance with the new requirement.

Industry consultation underway

The European Commission has launched a consultation running from 4 June to 2 July 2026. The process invites steel producers, steel users, traders, importers, industry associations and other stakeholders to identify practical documentation methods for verifying the country of melt and pour of steel imported into the European Union.

BIR encourages companies involved in ferrous scrap collection, processing, trading and recycled steel production to participate before the consultation closes. The organisation considers the process an opportunity for the recycling sector to contribute technical and commercial expertise to the development of a verification framework that reflects established recycling and scrap trading practices.

Source: BIR

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