【SMM Steel】The European Commission launched a four-week targeted consultation on June 4 running through July 2 on documentary evidence required to verify the country of melt and pour for steel imports. The consultation engages steel producers traders importers and industry associations. The resulting Implementing Act is scheduled for adoption by August 31 2026 and will take effect on October 1 2026. The melt and pour rule establishes steel origin based on where it was first melted and cast preventing circumvention via minimal processing in third countries. The EU Steel Regulation takes effect July 1 with duty-free import cap of 18.3 million tonnes and 50% tariff on volumes exceeding quotas.

As resource security and decarbonization become increasingly important, major economies are strengthening efforts to retain aluminum scrap. From the EU's review of export controls and the U.S. strategic asset proposal to Japan's circular economy initiatives and policies in the UAE and South Africa, these developments could reshape global scrap flows and affect secondary aluminum markets.

SMM, MAY 31 – According to SMM statistics, overseas metallurgical alumina production in May 2026 fell by approximately 3.9% year-on-year, while rising by about 3.3% month-on-month. Ongoing disruptions in the Middle East kept output below last year's level, though a modest recovery was seen from April's low point. In terms of production structure Vedanta's FY26 earnings report showed full-year alumina production reached 2.9 million tonnes, a record high, mainly due to a 48% surge in output from the Lanjigarh refinery and cost optimization. The aluminum business contributed nearly 50% of the group's EBITDA, with production costs falling to $1,752 per tonne, the lowest in five years. According to South32's previous guidance, its Worsley alumina project continued to experience shipment disruptions due to tropical cyclones and third-party gas supply interruptions. The company maintained its full-year production guidance of 3.75 million tonnes, but expects second and third quarter output of 959,000 tonnes and 886,000 tonnes respectively, showing a phased decline. Additionally, geopolitical risks continued to simmer. The European Commission is considering tightening restrictions on alumina exports to Russia, which could reshape European alumina trade flows if sanctions are upgraded. Indonesia's Marine and Fisheries Ministry sealed three jetty berths of Well Harvest Winning Alumina (WHW) over compliance issues. The company is actively communicating with authorities and expects the berths to reopen soon, with local production temporarily unaffected. Looking ahead to June, uncertainties persist in overseas metallurgical alumina supply. Output is expected to edge down about 0.2% month-on-month. On the one hand, Indonesia's bauxite quota issues could disrupt local alumina refining; on the other hand, potential further EU restrictions on alumina exports to Russia would also affect output in related regions. The convergence of these factors is expected to lead to a slight fluctuation in overall overseas production.

[SMM Tin Morning Brief: The Most-Traded SHFE Tin Contract Continued to Climb During the Night Session, Spot Market Trading Expected to Cool Down]

The European Commission has escalated its stainless steel trade dispute with Turkish exporter Çolakoğlu Metalurji to the Court of Justice of the European Union. The case concerns EU anti-circumvention measures on stainless steel sheets and coils originating in Indonesia but shipped from Turkey, and the Commission is seeking to overturn parts of an earlier ruling that favored the Turkish exporter.

In May 2026, the European Union adopted a series of restrictive measures against China in the new energy sector, several of which are directly related to the photovoltaic and energy storage supply chains. In this situation, how will the European's solar market goes...?

Under this provisional agreement, the tariff concessions granted by the EU on US industrial products, certain agricultural products, and seafood will expire on the originally scheduled date if both sides do not decide to extend them. In addition, the EU plans to establish a "safeguard mechanism": if US goods imports surge sharply and cause serious damage to EU industry or agriculture, the European Commission will have the authority to launch an investigation and suspend the corresponding tariff concessions. Regarding steel and aluminum products, if the US maintains tariffs exceeding 15% on EU steel and aluminum derivative products before the end of 2026, the European Commission will likewise have the authority to suspend certain tariff concessions.

[SMM Steel] The European Commission released a draft regulation clarifying how importers can deduct carbon costs already paid in third countries from CBAM certificate obligations. The draft outlines detailed rules covering carbon price calculation methods, verification procedures, supporting documents, and supply chain traceability requirements. Under the proposal, companies can offset carbon taxes, carbon fees, or ETS costs paid in the production country only if the costs are directly linked to product emissions, exclude government subsidies or rebates, and are supported by transparent and verifiable emissions data. The regulation is expected to become a key supporting framework for CBAM’s full operational phase.

[SMM Steel] The European Commission launched a consultation on May 13 regarding draft CBAM rules that could allow EU importers to receive discounts on CBAM certificate costs if imported goods have already been subject to carbon pricing outside the EU. The proposal distinguishes between domestic and international carbon credits, with international credits limited to 10% of declared emissions and required to comply with Article 6 of the Paris Agreement. Currently, only Japan, South Korea, and Vietnam allow international credits within their carbon markets, according to ICAP. The consultation period will run until June 10.

【SMM Steel】The European Commission has proposed updated benchmark values under the EU ETS for the 2026-2030 period. Under the revised methodology, indirect electricity-related emissions will remain included in 14 product benchmarks. The Commission said the revised benchmarks would enable companies to keep receiving free allocations covering about 75% of their emissions on average. The proposal is expected to be formally adopted by the end of June after public consultation.