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.
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.
| 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
