Flat steel
In the flat steel segment, quota utilization has been relatively strong in key categories, with several origins approaching full allocation shortly after the start of the quarter.
For hot-rolled coil, India and Turkey remained the most “popular” origins.
Notably, India has fully exhausted its allocation for HRC for the second quarter of 2026, just a couple of days after it was renewed. It is worth noting that, as of April 1, indicative HRC volumes awaiting allocation for India stood at 304,826 tonnes, exceeding the available duty-free quota of 225,306 tonnes. By Tuesday April 7, the quota had been fully exhausted, with no tonnages remaining awaiting allocation, European Commission customs data showed.
Market participants noted that a portion of these volumes reflects carry-over demand from the previous quarter, combined with continued preference for duty-free material.
Turkey has used over 50% of its 398,355 tonne allocation for the period, with tonnages awaiting allocation indicating that the quota will be fully utilized within days as well [see table].
Sources said, that buyers were rushing second-quarter bookings ahead of imminent implementations of new safeguards as of July 1. The EU implemented provisional steel safeguard measures in July 2018, followed by definitive measures in February 2019. The new system, expected to replace existing safeguards, will come into effect as of July 1 and are expected to include a large cut in import quotas (about 50%) and a higher “out of quota” duty (50% instead of 25%).
“We don’t know the size of country-specific quotas, so everyone who needs to import [is trying] to buy as much as possible with delivery in Q2,” a buyer in Italy said.
In downstream products, including cold-rolled coil and hot-dipped galvanized coil, quota usage has also been uneven.
Europe’s CRC market has historically relied heavily on imported material, particularly for standard commodity grades. But recent regulatory changes have significantly narrowed sourcing options. In particular, an ongoing anti-dumping probe covering CRC shipments from India, Japan, Taiwan, Turkey and Vietnam — which together account for roughly two-thirds of the EU’s total CRC import volume — has materially reduced the availability of foreign supply.
Despite the ongoing anti-dumping investigation for CRC, three out of five targeted countries — Turkey, Vietnam and Taiwan — have used up large portions of their allocations as of April 7.
“We take the risk [of importing coil] to diversify supply sources. Plus, new safeguards will come into force in July — so it is best to import coil before that, because the new regime suggests a 50% imports cut,” a buyer in Germany said.
For HDG, certain origins have seen rapid take-up, while others still have notable balances available or pending allocation.
Sources said this divergence reflects shifting trade flows and continued uncertainty linked to the EU’s Carbon Border Adjustment Mechanism (CBAM), which has complicated import planning.
“Some quotas are moving quickly, but others are barely touched because buyers are still cautious on CBAM costs,” a trader in Northern Europe said. “Besides, lead times are stretching, and new war in the Middle East send Asia-origin cargoes around the Cape of Good Hope, which adds 2 more weeks to lead times.”
Disruptions to new import flows have lent support to a bullish trend in the domestic market, despite end-user demand seen as stable at low levels, Fastmarkets understands.
For example, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €718.25 ($839.37) per tonne on April 7, down by €0.51 per tonne from €718.76 per tonne on April 2.
The Northern Europe index was up by €6.75 per tonne week on week and up by €18.25 per tonne month on month.
European mills were largely sold out for second-quarter delivery HRC, with only limited tonnages for June lead times left. For example, in Germany and the Benelux area, offers for July shipment HRC were reported at higher levels of €750-760 per tonne ex-works. In contrast, in the second half of March, deals for June-delivery coil in Northern Europe were heard at €700-730 per tonne ex-works.
Long steel
In contrast, uptake in the long steel segment has generally lagged behind that of flat steel.
Although some activity has been recorded in rebar and wire rod quotas, with Turkey leading the uptake in both categories, significant volumes are yet to be utilized across multiple origins.
Market participants said that this slower pace is consistent with recent trends, where buyers have increasingly relied on domestic supply rather than imports.
“There is no urgency to book imports in longs at the moment,” a distributor said. “People prefer local material, especially with the uncertainty around additional CBAM costs.”
Fastmarkets’ price assessment for steel reinforcing bar (rebar) domestic, delivered Northern Europe averaged €635.63 per tonne at the midpoint in March, versus an average of €623.75 per tonne in February.
The corresponding weekly price assessment for steel wire rod (mesh quality) domestic, delivered Northern Europe averaged €621.25 per tonne at the midpoint in March, versus an average of €597.50 per tonne in February.
Local prices in Europe have been on an upward trajectory in recent months, driven by higher production costs — for scrap, electricity and transportation. Coupled with tighter imports due to the implementation of CBAM and upcoming safeguards, this creates the room for further increases.
Author: Julia Bolotova, Vlada Novokreshchenova
