S. Korean steelmakers to get higher quotas for EU exports

South Korean steelmakers will get higher quotas on top of their exports to the European Union starting from February 2, the Ministry of Foreign Affairs said late last week.

The additional quotas come after the EU told the World Trade Organization it will impose a 25% duty on steel imports above a certain threshold, effective February 2, the ministry said. Once the quota has been reached, the 25% duty would apply, the European Commission had said.

The higher quotas are expected to rise 105% from February 2 to June 30, 2019; to 110% from July 1, 2019 to June 30, 2020; and to 116% from July 1, 2020 until June 30, 2021, the ministry said.

Domestic steelmakers, such as Posco Daewoo, are expected to get the additional quotas over 2019-2021 on 11 items which include cold-rolled and galvanized products.

In 2017, South Korea exported about 3.13 million mt of steel products to the EU, valued at $2.9 billion, the ministry said.

— Clement Choo