Metal packaging sector raises concerns over EU steel safeguards

Core Viewpoint - European metal packaging manufacturers express concerns that proposed changes to EU steel safeguards could lead to increased costs, limited access to specialized materials, and disrupted supply chains across the region [1][2]. Proposed Safeguards and Changes to Steel Import Rules - The European Commission is preparing a new safeguard framework to replace existing steel measures expiring in mid-2026, which would significantly reduce tariff-free steel import quotas and increase duties on volumes exceeding those limits [3]. - Tariff-free imports could be cut by almost half, while the out-of-quota tariff would rise to 50%, up from the current 25% [3]. Cost Pressures and Administrative Burden for Packaging Producers - Industry groups estimate that the new safeguards could generate between €5 billion and €9 billion in additional annual costs for downstream sectors if steel import demand remains close to recent levels [5]. - These costs would primarily arise once quota limits are exceeded and higher tariffs apply [5]. - The proposal introduces a stricter "melt and pour" rule to verify the origin of steel, requiring detailed documentation of production sources [5]. Wider Implications for EU Packaging Supply Chains - The metal packaging sector advocates for a more balanced approach that protects EU steelmakers while ensuring reliable access to imported steel when domestic supply is limited or unsuitable [7].