EU expands safeguard quota caps to 16 products

The European Commission has expanded the product range covered by residual tariff-rate quota (TRQ) caps to 16 categories, up from just two previously – hot rolled coil and wire rod, Kallanish notes.

The Commission has reduced the cap on HRC from 15% to 13%, while the wire rod cap remains at 15%.

These limits, which restrict the maximum volume a single country can supply to the EU under the residual TRQ, aim to help existing suppliers maintain historical trade flows, while ensuring supply stability from countries at risk of being crowded out, according to the Commission.

The updated rules will take effect on 1 April.

EU “other country” residual safeguard quotas

Product category  Other country TRQ 1.4-30.6 (tonnes) Cap %  Cap (tonnes) Specific “other country” from 1.7 to 30.6
1A – HRC 856,770 13 111,380 Egypt, Vietnam, Japan, Taiwan, Australia, Switzerland, United States, Libya, Canada
2 – CRC 334,370 13 43,468 Türkiye, Vietnam, Taiwan, Japan
16 – Wire Rod 100,499 15 15,075 Malaysia, Algeria, Egypt, Bosnia and Herzegovina, Korea, Japan, Indonesia, Serbia
17 – Angles, shapes, sections 67,480 15 10,122 Türkiye, United Kingdom
4B – Metallic coated 104,779 20 20,956 Türkiye, Vietnam, Japan
(also China, Korea, India, United Kingdom if they exhaust their specific quota)
6  – Tin mill products 37,107 20 7,421 India, Türkiye
7 – Quarto plates 550,190 20 110,038 India, Indonesia, Korea
13 – Rebars 137,841 20 27,568 Algeria, Egypt
4A – Metallic coated 472,050 25 118,012 Türkiye, Vietnam, Taiwan
 5 – Organic coated 42,861 25 10,715 Vietnam
14 – Stainless bars, light sections 5,150 25 1,287 China, Taiwan
3B – Electrical sheets (other than GOES) 8,628 30 2,588 India, Japan
20 – Gas pipes 11,107 30 3,332 UAE, Korea
21 – Hollow sections 18,533 30 5,560 China, Serbia
25B – Large welded  tubes 6,495 30 1,948 Algeria
26 – Other welded pipes 20,051 30 6,015 India,Serbia, Korea

Elina Virchenko Turkey

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

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