Finland-based stainless steel producer Outokumpu has welcomed the agreement reached by the European Commission, the European Parliament and the Council on new EU steel safeguard measures, saying the revised framework will provide stronger protection for the European steel industry against global overcapacity, unfair competition and carbon leakage.
Lower quotas and higher tariffs seen as stronger protection
Outokumpu said it supports the new safeguard system, under which quota volumes will be reduced by approximately 47 percent compared to the 2024 quotas, while the tariff applied to volumes exceeding those quotas will rise to 50 percent.
The company stated that these changes are necessary in light of the difficult conditions facing European steelmakers. In its assessment, weak demand in Europe, a high share of low-priced imports from Asia and the 50 percent tariffs in the United States have all contributed to lower capacity utilization rates among European producers.
Outokumpu president and CEO Kati ter Horst stated that the new measures would provide additional support for the European steel industry, which the company says continues to face pressure from subsidized imports and the circumvention of existing trade measures.
Outokumpu stresses fair trade and carbon considerations
In its statement, Outokumpu said it supports free trade, but emphasized that trade must remain fair. The company argued that this has not been the case due to what it described as heavily subsidized steel imports from Asia entering Europe, as well as the circumvention of current safeguard measures.
The company also underlined the environmental aspect of the debate, noting that European stainless steel has a very low carbon footprint. Outokumpu said that while the Carbon Border Adjustment Mechanism (CBAM) helps level the playing field, safeguard measures are still needed to address import pressure and protect regional production.
“Melted and poured” principle welcomed to tighten origin rules
Another key point welcomed by Outokumpu is the inclusion of provisions linked to the “melted and poured” principle. According to the company, this rule is intended to reduce circumvention and improve transparency in the steel supply chain. Kati ter Horst said the company supports the European Commission’s approach to defining origin according to where the steel is melted and poured, adding that the origin should be verifiable through the best available methods, such as a mill test certificate, which is already used to document the chemical and mechanical properties of steel products.
