EU quota data show region’s interest in Asian flat products

EU steel import quotas for Q2 2023 continue to be filled rather slowly in the long segment. Meanwhile, Asian flat steel is in stronger demand in Europe.

European importers have been showing very little interest in the foreign longs. As a result, the quota volumes remained almost untouched during the first month of the new quarter period. The highest percentage of the Q2 longs quota usage is seen for Moldova rebar (15% used), while in wire rod more than 90% of the quota volumes were still available for all the countries as of May 5.

Better demand is observed in merchant bars. A Chinese quota was completely exhausted during the first several days of the new quota period, Metal Expert reported earlier. A quota for Turkish products and a residual quota are used by 34% and 43% respectively.

Quotas for flats are being used more rapidly. India brought its genral industry HDG (4A) quota to the critical point of 96% including the volumes transferred from the quarter ended on March 31, 2023. South Korea used more than a half of the volumes, and has 18,500 t of the 4A quota left to be supplied duty-free to the EU until June 30. 4B auto-grade HDG quota is filled gradually. China, Korea and the UK used around one-third of their volumes as of May 5, Metal Expert learnt.

Import of Indian coils has finally revived after the cancellation of the export duty back in November 2022. An Indian HRC quota is used by 23%. A residual HRC quota is used by 29%. South Korea filled 39% of its HRC and 22% of CRC quotas in April.

The highest demand was observed in the residual quota for quarto plates, which reached a critical point of 96%. Volumes are most likely coming from Asia, including China, Korea, India, Indonesia, sources told Metal Expert.