The EU's revision of residual quotas will result in an annual deficit of 1.63 million tons of hot-rolled steel (HRC), warns the Italian industry association Assofermet. In late May, the EU notified the WTO that steel import safeguards would extend until June 2026. The European Commission is also imposing a 15% restriction on HRC and wire rod imports per quarter for any individual country in the "other countries" category.

Assofermet predicts that this shortage will significantly impact the automotive, construction, engineering, and manufacturing sectors, reducing their competitiveness. In 2023, Vietnam, Japan, Taiwan, and Egypt exported 3.9 million tons of HRC to Europe, which may drop to 2.26 million tons annually due to these measures.

President of Assofermet Paolo Sangoi emphasized the necessity of imports to meet demand, criticizing the overlap with the cross-border carbon adjustment mechanism, leading to double taxation. Assofermet highlighted that the safeguard measures are based on outdated data and calls on the European Commission to ensure the necessary steel supply for European production, warning of increased costs and port congestion.