EU HRC quotas exhausted by key Asian suppliers, while others remain untapped

As of Jan. 10, the European Union’s tariff-rate quota (TRQ) system for hot-rolled coil (HRC) imports has been fully utilized by Vietnam, Japan, and Taiwan, according to the latest data from the European Commission. This rapid exhaustion of quotas highlights the strong demand for competitively priced HRC from these Asian countries, which have been key suppliers to the European market.

In stark contrast, 38% of Egypt’s quota remains available, and countries such as Australia, Switzerland, the United States, Canada, and Libya have not yet utilized any of their first quarter quotas, maintaining 100% availability.

Market participants have noted that the swift exhaustion of quotas by Vietnam, Japan, and Taiwan was anticipated, given the competitive pricing and strong demand for their HRC products. However, the availability of quotas from other countries presents an opportunity for European importers to explore alternative sources, particularly as domestic demand remains subdued. Some sources had previously shared expectations that the EU quotas would be filled quickly in Q1, anticipating high port-side stock levels awaiting clearance from Q4 2024.

Domestic European hot-rolled coil prices have remained largely stable since the start of the year, with no major changes in demand reported. Market participants are cautiously optimistic about potential positive developments in the coming days, although the overall sentiment remains one of wait-and-see.

Platts assessed both Northwest European and Southern Europe HRC prices at Eur570/mt ex-works, up Eur10 on the day.

Meanwhile, Platts assessed prices for imported hot-rolled coil in Northwest Europe at Eur535/mt CIF Antwerp, and in Southern Europe at Eur530/mt CIF Italy, both stable on the day.

Charles Thompson | Devbrat Saha

Vietnam, Japan, Taiwan quickly exhaust EU HRC quota

Vietnam, Japan, and Taiwan face immediate EU tariff-rate quota (TRQ) pressure as hot rolled coil orders from those origins are already oversubscribed for the first quarter by 9%, 56%, and 13%, respectively, as of 6 January.

This is against new EU allocations of 138,766 tonnes each for Q1, Kallanish notes from the EU customs portal.

Vietnam has allocated 150,920t out of a TRQ of 138,766t, exceeding its quota by 12,154t (9%).

Japan is showing significant oversubscription, overshooting the quota by 56%, with 216,131t awaiting allocation – exceeding its 138,766t TRQ by 77,365t.

Taiwan has allocated 157,444t, exceeding its 138,766t TRQ by 18,678t (13%).

Egypt, with a TRQ of 138,766t in the “other countries” category, has 86,617t of HRC submitted for allocation, leaving 52,149t or 38% of its quota remaining.

Meanwhile, Australia, Switzerland, the United States, Canada, and Libya retain 100% of their allocated quotas for Q1.

As a result, the “other countries” category shows rapid usage, with 611,112t, or 49% of the allocated Q1 quota awaiting allocation.

Countries with larger quotas exhibit minimal utilisation rates, with availability ranging between 87-99%. Collectively, 46,236t have been submitted for clearance, with South Korea accounting for the largest volume at 24,776t.

Overall, a total of 657,348t are pending allocation.

“A clear picture will be only shown by 10 January. It seems not all EU customs offices are working at the same speed for import clearing,” one trader notes.

EU Q1 HRC TRQ allocation (tonnes)
Origin Quota 01.01 – 31.03.2025 Awaiting allocation Available TRQ Avaliable TRQ %
Russia  –  – – –
Türkiye 464,844 9,383 455,461 98
India 295,145 6,029 289,115 98
South Korea 184,310 24,776 159,534 87
United Kingdom 154,182 1,866 152,316 99
Serbia 163,621 4,183 159,438 97
  Other countries, inc
  Egypt 138,766 86,617 52,149 38
  Vietnam 138,766 150,920 -2,154 -9
  Japan 138,766 216,131 -77,365 -56
  Taiwan 138,766 157,444 -18,678 -13
  Australia 138,766 – 138,766 100
  Switzerland 138,766 – 138,766 100
  United States 138,766 – 138,766 100
  Libya 138,766 – 138,766 100
  Canada 138,766 – 138,766 100
Total other countries 1,248,894    611,112 637,782 51
Total 2,510,995    657,348 1,853,647 74

Source: EU TARIC, as of 7 January. Calculated by Kallanish

Elina Virchenko UAE

kallanish.com

Turkey overshoots European OCS quota, hollow sections scarce

Turkey has overutilized its TRQ for organic coated sheets shipped to the European Union by 35%, while hollow sections, large welded tubes, and other welded pipes have low percentages, ranging from 14% to 5%, as of January 3, the second working day of 2025, Kallanish notes from the EU customs portal.

Turkey submitted 21,036 tonnes for customs clearance out of its allocated 15,544t TRQ for organic coated sheets in Q1 2025, meaning it has over-subscribed by 35%.

Hollow sections have already submitted 84,015t for clearance out of the 97,299t TRQ, with only 14% or 13,285t still available for Q1.

The availability of large welded tubes is 10%, or 1,505t, as 13,262t of the 14,768t TRQ have already been submitted for allocation.

For other welded pipes, only 5% or just 204t remain available, as 3,562t out of the 3,766 tonnes TRQ is claimed.

Turkish steel products EU TRQ allocation (tonnes)
Product Quota 01.01- 31.03.2025 Awaiting allocation Available Avaliable, TRQ % 
HR sheets, strips 464,844 9,382 455,461 98
Organic coated sheets 15,544 21,036 -5,492 -35
Stainless CR sheets, strips 20,599 1,555 19,045 92
Merchant bars, light sections 104,811 7,275 97,537 93
Rebars 93,361 1,572 91,789 98
Wire rod 116,424 45,892 70,531 61
Railway material 1,539 191 1,349 88
Gas pipes 48,890 22,422 26,467 54
Hollow sections 97,299 84,015 13,285 14
Large welded tubes 14,768 13,262 1,505 10
Other welded pipes 3,766 3,562 204 5
Wire 50,817 119 50,697 100

Source: EU TARIC, as of 3 January. Calculated by Kallanish

Elina Virchenko UAE

kallanish.com

 

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.

EU TRQ allocation (tonnes) for HR flats (category number 1)
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

kallanish.com