EU Steel Re-Rollers to Benefit from Steel Quota Changes
[tintuc]
EU steel re-rollers, including Italy’s Marcegaglia, the biggest re-roller, will gain from changes to the EU’s steel protection rules. These changes set stricter import quotas for downstream products but only slightly cut quotas for hot-rolled steel coils (HRC).
The changes are expected to sharply lower Vietnam’s duty-free hot-dip galvanized steel imports in the second quarter—possibly by more than 50% compared to the fourth quarter of 2024. The 13% quota on cold-rolled steel could cut Japan’s supply in half, reduce Taiwan’s imports by 70%, and lower Turkey’s supply by nearly 50%.
Semi-finished products are still free from these protection rules, while the HRC quota cuts are not as tough as expected. HRC imports were already hit last year when the EU set a 15% cap on each country’s access to other nations’ quotas. An anti-dumping investigation involving Vietnam, Egypt, India, and Japan has also limited buyers’ options.
Indonesia’s HRC exports to the EU rose 50% to over 400,000 tons last year. Its third-quarter volume grew 30% from April to June, and fourth-quarter volume rose 15% from July to September. Exports from January to March are expected to increase more, with shipments also coming from other duty-free suppliers like Malaysia, Saudi Arabia, and Thailand.
EU steel re-rollers, including Italy’s Marcegaglia, the biggest re-roller, will gain from changes to the EU’s steel protection rules. These changes set stricter import quotas for downstream products but only slightly cut quotas for hot-rolled steel coils (HRC).
The changes are expected to sharply lower Vietnam’s duty-free hot-dip galvanized steel imports in the second quarter—possibly by more than 50% compared to the fourth quarter of 2024. The 13% quota on cold-rolled steel could cut Japan’s supply in half, reduce Taiwan’s imports by 70%, and lower Turkey’s supply by nearly 50%.
Semi-finished products are still free from these protection rules, while the HRC quota cuts are not as tough as expected. HRC imports were already hit last year when the EU set a 15% cap on each country’s access to other nations’ quotas. An anti-dumping investigation involving Vietnam, Egypt, India, and Japan has also limited buyers’ options.
Indonesia’s HRC exports to the EU rose 50% to over 400,000 tons last year. Its third-quarter volume grew 30% from April to June, and fourth-quarter volume rose 15% from July to September. Exports from January to March are expected to increase more, with shipments also coming from other duty-free suppliers like Malaysia, Saudi Arabia, and Thailand.
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