[SMM Steel] EU Steel Quota Cuts Raise Concerns Over Ukraine’s Export Losses

[SMM Steel] Asian HRC prices remained largely stable despite weaker Chinese macroeconomic data and lower iron ore prices. Market sentiment stayed cautious as weak domestic demand in China pressured spot sales and buyers adopted a wait-and-see approach. Chinese mills were reluctant to release new offers amid uncertain price trends. Meanwhile, Europe has largely suspended imported HRC purchases ahead of new safeguard measures effective July 1 and the upcoming summer holiday season.

[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.