BIR raises concerns over EU steel regulation, urges recycling industry participation

• New EU steel quotas cut duty-free imports by 47%
  
  
• BIR highlights potential impact on recycled steel trade
  
  

The Bureau of International Recycling (BIR) has expressed concerns over the European Union's newly adopted Steel Regulation, warning that the measures could have significant implications for global recycled steel and ferrous scrap trade flows.

The regulation, formally adopted by the Council of the European Union on 8 June 2026, will come into force on 1 July 2026 following the expiry of the current EU steel safeguard measures. The new framework forms part of the EU's Steel and Metals Action Plan aimed at addressing global steel overcapacity and strengthening the competitiveness of the European steel sector.

Duty-free steel import quotas reduced

Under the new regulation, the EU will implement a revised tariff-rate quota (TRQ) system, reducing annual duty-free steel import volumes to 18.3 million tonnes. This represents a decline of approximately 47% compared to quota levels under the previous safeguard mechanism in 2024.

Imports exceeding the allocated quotas will face a 50% duty, double the 25% out-of-quota tariff applied under the current regime.

According to BIR, such changes could have wider implications beyond the steel industry, as recycled steel and ferrous scrap remain essential raw materials for electric arc furnace (EAF)-based steel production and are actively traded across global markets.

New "melt and pour" requirement introduced

A key feature of the regulation is the introduction of a "melt and pour" origin requirement. The provision is designed to improve transparency and strengthen enforcement by identifying the country where steel was originally melted and poured.

The European Commission is expected to publish detailed implementation guidelines by 31 August 2026, outlining the documentation importers will need to provide to demonstrate compliance with the new origin rules.

BIR noted that the new requirements could influence established commercial practices across steel and recycling supply chains, making practical and verifiable documentation procedures essential for market participants.

BIR encourages industry participation

The European Commission has launched a public consultation running from 4 June to 2 July 2026, seeking input from steel producers, traders, importers, industry associations, steel users and other stakeholders on acceptable evidence for verifying the country of melt and pour.

BIR has encouraged companies involved in ferrous scrap collection, processing, trading and recycled steel production to participate in the consultation process. The organisation said the initiative provides an important opportunity for the recycling sector to contribute technical expertise and ensure that future compliance requirements remain practical and aligned with existing recycling and scrap trade practices.

Industry seeks balanced trade framework

BIR reiterated its commitment to working with European institutions through its European members and Recycling Europe on regulatory issues affecting the recycling sector. The organisation emphasised that open, fair and effectively regulated markets remain critical to supporting circular economy goals, resource security and decarbonisation efforts. It added that future trade policies should strengthen, rather than hinder, the role of recycled materials in global steel supply chains.

Outlook

The introduction of tighter import quotas and stricter origin verification requirements is expected to reshape steel trade flows into the EU from July onward. Market participants across the steel and recycling sectors will closely monitor the implementation of the "melt and pour" rules, as well as the outcome of the ongoing consultation process, for potential impacts on recycled steel and ferrous scrap trade.