Countries accelerate EU HRC allocation, Turkey critical
Turkey reached critical EU tariff-rate quota (TRQ) usage for category 1 hot-rolled (HR) sheet and strip by 17 September, while South Korea, Serbia, and Australia accelerated their supply to the EU, Kallanish notes from the EU TARIC portal.
Turkey, holding the largest HRC TRQ at 475,174 tonnes, rapidly utilised its quota, regaining lost ground in the EU market, as anticipated. Turkey benefits from its geographic proximity to Europe, while Asian rivals face logistics constraints in the Red Sea.
The EU’s 15% cap on hot rolled coil imports from “other countries” implemented in July resulted in Turkey’s rivals like Egypt, Vietnam, Japan, and Taiwan quickly exhausting their 141,850t TRQ each for the third quarter.
Turkey’s position was further bolstered by the EU’s anti-dumping investigation launched in August on flat-rolled steel from Egypt, India, Japan, and Vietnam. Notably, Turkey’s HR flat steel faces a 4.7-7.3% AD duty in the EU, which market participants consider “manageable”.
By 17 September, Turkey had utilised 93% of its EU TRQ for HR flat steel, leaving only 7%, or 31,828t, for the remainder of Q3.
India, with the second-largest quota of 301,704t, had used 80% by mid-September, having already utilised 74% in the early part of Q3. The country’s supply may slow due to the ongoing AD probe, a factor that could also impact supply from Egypt, Japan and Vietnam.
South Korea, the third-largest TRQ holder at 188,405t, had utilized 61%, while Serbia, with a 167,257t allocation, had used 56%.
Notably, Australia, a less typical supplier, used 55% of its EU TRQ.
Other countries such as the UK, Switzerland, and the US have used 16%, 4%, and only 2% respectively. Libya and Canada have not utilised their TRQs at all, leaving 100% of their allocations available.
| Origin | Quota 1.7-30.9.2024 | Imported | Balance | Awaiting allocation | Remaining | Available TRQ, % |
| Russia | not applicable | |||||
| Türkiye | 475,174 | 441,619 | 33,554 | 1,726 | 31,828 | 7 |
| India | 301,704 | 241,421 | 60,282 | – | 60,283 | 20 |
| South Korea | 188,405 | 114,230 | 74,175 | 19 | 74,156 | 39 |
| United Kingdom | 157,608 | 25,596 | 132,012 | 123 | 131,889 | 84 |
| Serbia | 167,257 | 92,737 | 74,519 | 1,576 | 72,944 | 44 |
| Other countries, inc | ||||||
| Egypt | 141,850 | 141,789 | 61 | – | 61 | – |
| Vietnam | 141,850 | 141,850 | 0 | – | 0 | – |
| Japan | 141,850 | 141,850 | 0 | – | 0 | – |
| Taiwan | 141,850 | 141,850 | 0 | – | 0 | – |
| Australia | 141,850 | 77,592 | 64,258 | – | 64,258 | 45 |
| Switzerland | 141,850 | 5,579 | 136,270 | 3 | 136,268 | 96 |
| United States | 141,850 | 3,060 | 138,790 | – | 138,790 | 98 |
| Libya | 141,850 | 0 | 141,850 | – | 141,850 | 100 |
| Canada | 141,850 | 0 | 141,850 | – | 141,850 | 100 |
| Total other countries | 945,665 | 653,570 | 623,078 | 3 | 292,093 | 66 |
|---|---|---|---|---|---|---|
| Total | 2,235,812 | 1,569,174 | 997,621 | 3,447 | 663,191 | 44 |
Source: EU TARIC, as of September 17. Calculated by Kallanish
Elina Virchenko UAE
