Turkey’s EU steel export quotas rose as the European Commission decided to allocate Russia’s quota to other countries following a ban on Russian steel, according to a statement from EC March 15, raising expectations of pricing support for Turkish mills.
The rise in Turkey’s steel quotas could support Turkish mills’ steel pricing in the coming quarters, which already rose notably in the last three weeks amid the Russia-Ukraine conflict, a service center manager told S&P Global Commodity Insights March 16.
Turkey was well placed to provide steel to the EU in the absence of mills in the Commonwealth of Independent States due to Russia’s invasion of Ukraine, Ugur Dalbeler, vice president of the Turkish Steel Exporters’ Association and CEO of major steelmaker Colakoglu told S&P Global on March 15.
“Imports from Belarus and Russia subject to the safeguard measure will no longer be able to enter the Union,” EC said in a statement March 15.
“Thus, the Commission has decided to adjust the functioning of the safeguard measure to ensure that these import bans do not create a shortage of supply in the Union market in the categories affected, and that Union steel users can continue sourcing those volumes from other sources,” according to the statement.
As a result of EC decision, Turkey’s hot-rolled sheets and strips quota rose to 430,246 mt for the second quarter of 2022 from 323,200 mt in the first quarter.
Merchant bars and light sections quota increased to 97,010 mt for Q2 from 64,156 in Q1.
Turkey’s rebar quota rose to 86,412 mt for Q2 from 60,591 mt in Q1, while wire rod quota increased to 107,758 mt for Q2 from 78,653 mt in Q1.
Hollow sections quota of Turkey also rose substantially to 90,057 mt for Q2 from 68,575 mt in Q1.
Turkey’s large welded tubes quota rose to 13,668 mt for Q2 from 9,628 mt in Q1, while Turkey’s other welded pipes quota remained relatively stable, according to the EC statement.
— Cenk Can
