MMi Daily Iron Ore Report (May 19)

[SMM Steel] Ukraine’s steel industry warned that the EU’s planned steel safeguard revisions could significantly reduce the country’s export revenues and damage its wartime economy. Under the new measures effective from July 1, the EU plans to cut steel import quotas by 47% and impose a 50% tariff on out-of-quota volumes. Ukrainian steelmakers said the restrictions could sharply limit access to their largest export market, as Ukraine exported around 2.65 million mt of steel to the EU last year. Industry sources estimated the proposed quota reductions could cut export volumes by around 70% and result in up to €1 billion in lost export revenues.

[SMM Steel] Italy’s crude steel output increased by 7.2% y-o-y to 1.93 million mt in April 2026, reaching the highest monthly level in the past four years, according to Federacciai. January-April steel production rose 2.9% y-o-y to 7.6 million mt. Long steel output remained the main growth driver, rising 12.3% y-o-y in April to 1.2 million mt, while January-April long product production increased 10.5% y-o-y to 4.6 million mt. In contrast, flat steel output continued weakening, falling 9.3% y-o-y in April to 743,000 mt, reflecting softer demand conditions in the European flat steel market.

[SMM Steel] The European Parliament approved new steel safeguard measures effective from July 1, pending final approval by EU member states. The new regime sets a 18.3 million mt annual steel tariff-rate quota with a 50% out-of-quota duty covering 30 steel product categories and country-specific quotas. EU officials said the measures will apply equally to all third countries, including Ukraine and FTA partners. Some lawmakers supported stricter import controls to protect the EU steel industry, while others warned that high energy costs, decarbonization policies, and EU ETS-related costs continue to pressure European steelmakers.