EU's new safeguard measures are supporting the European steel market

The European Union's new trade protection measures aimed at safeguarding its steel industry continue to influence market dynamics across the region. The German Steel Federation has welcomed the EU's newly introduced safeguard mechanism, arguing that the measures will provide stronger protection for European steelmakers against global overcapacity and increasing import pressure.

According to the federation, tighter import quotas, higher duties on quota overruns, and the introduction of the "melt and pour" traceability requirement will allow for stricter monitoring of steel imports from third countries. The German Steel Federation believes that these measures will help preserve the competitiveness of the European steel industry, reduce unfair competition, and support Germany's industrial production base.

Meanwhile, uncertainty regarding price levels persists in the Italian plate market. Producers are targeting ex-works prices of EUR730-750/t, while order books are reportedly filled through July. However, market sources note that many mills are currently operating at only 40-50% of capacity, suggesting that the existing order situation does not necessarily reflect strong underlying demand.

Plate inventories held at ports are being offered at around EUR770/t for S235 grade and EUR790/t for S355 grade material. Market participants indicate that stockholders are attempting to maintain elevated price levels due to uncertainty surrounding future import flows and the lack of clarity regarding the implementation details of the EU's "melt and pour" requirement.

Nevertheless, weak demand remains the market's primary challenge. Industry representatives report that end-user demand is extremely subdued and that actual transaction volumes remain limited despite the relatively high offer prices.

Market participants generally agree that while the new trade measures are expected to provide support for European steel producers, weak demand conditions are likely to limit the scope for significant price increases in the short term.