European steel producers called on the European Union to reduce import quotas, warning that a potential supply flow could threaten an industry that has already been hit hard by the COVID-19 pandemic, Reuters reported.

In a statement, manufacturers criticized recent proposals to adjust the protective measures introduced in the EU in 2018 aimed at protecting against supplies diverted to Europe after Washington imposed 25 percent steel duties.

“The European steel industry’s survival is at further, serious risk because the (European) Commission’s steel safeguard review proposal does not consider the sharp collapse in demand,” said the letter distributed by industry group Eurofer.

Demand for steel has fallen by 50% since March, and 40% of workers employed in the European steel industry are sent on indefinite leave or work part-time, the statement said.

“We request a tariff-free quota size that reflects actual market conditions,” the statement noted.

The statement is signed by executives of the world's largest steel companies, including ArcelorMittal, Tata Steel, ThyssenKrupp and Salzgitter.