Where does your steel really come from? The EU will trace which furnace it was melted in.
Today, new rules were published in the Official Journal of the European Union that will change the conditions for importing steel into the EU from 1 October 2026. The European Commission has specified how importers will be required to prove where the steel was actually melted and first poured.
Sounds trivial? Perhaps. In practice, however, the new rules could have a significant impact on the European steel market and change the market dynamics for producers, re-rollers, importers and buyers.
Until now, determining the actual place where steel was melted has been extremely difficult for the final customer. Complex supply chains, multiple suppliers of semi-finished products and subsequent processing in different countries meant that information about where the steel was actually produced was not always transparent to the buyer.
From 1 October, the situation is supposed to change. Importers will have to declare the country of melt and pour as well as the heat number, allowing the history of the steel to be traced considerably further back than simply the country from which the finished product entered the EU. Failure to provide appropriate and verifiable documentation may result in the import being rejected. This should not only increase buyers’ awareness but also help tighten the quota system, which we have already covered in previous articles.
The new requirement will not apply to just a narrow group of products. Melt & Pour will cover all 26 steel product categories included in the EU’s new quota system – from hot- and cold-rolled sheets through quarto plates and stainless steel products to bars, wire rod, sections and tubes.
Melt and pour refers to the place where raw steel or iron was originally produced in liquid form in a steel- or iron-making furnace and subsequently cast into its first solid state following melting, including remelting of scrap.
Subsequent to public consultations with the steel industry, it was agreed that the Mill Test Certificate (MTC) will be the primary document, containing not only the heat number but also information identifying the country of melt and pour. At the request of numerous market participants who, having learned from experience, pointed out that restricting the procedure to a single document could cause significant difficulties during the initial implementation period, a transitional period has been established until 30 September 2027, during which the following alternative documents may serve as standalone evidence where melt and pour information is not indicated on the Mill Test Certificate or where an MTC has not been provided:
- invoices;
- delivery notes;
- quality certificates;
- long-term supplier declarations;
- cost accounting and production documents;
- customs documents from the exporting country;
- commercial correspondence;
- production descriptions.
In practice, however, this may result in longer awaiting time while documents are verified by customs authorities, leading to delays in procedures and, in extreme cases, even the rejection of an import.
The Commission makes no secret of why it wants to collect this information. The objective is to improve the traceability of steel origin, gain a better understanding of the European supply chain and build a dataset that may be used to implement future changes in trade policy.
The history of the steel trade shows however, that every new regulation is quickly met with the market’s creativity – and this time will probably be no different.
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