South Korea Expected to Exceed EU HRC Quota
[tintuc]
South Korean suppliers are limiting offers of hot-rolled steel coils (HRC) to the EU. They believe they have used up their safeguard quota for the April-June quarter and at least part of the July-September quarter in the region.
South Korea has become one of the EU’s biggest HRC suppliers in recent months because its quota is reliable. The country’s steel shipments are usually managed by its steel association and divided among producers, according to market sources.
However, as they prepare for the final quota quarter of the year—April to June—when suppliers with country-specific quotas can usually access one-third of the “other countries” quota, South Korean producers have gone beyond their normal share.
In the January-March quarter, South Korea used up its quota by mid-February. Many buyers turned to South Korea after Japan’s supply became unreliable due to an ongoing anti-dumping investigation at the time. That investigation, which also included Egypt, India, and Vietnam, confirmed high expected taxes on Japan, especially on Nippon Steel, whose imports now face a 33% tax. Buyers see South Korean and Japanese HRC as similar in quality, suitable for many uses, with a good range of products and value.
In January and February, South Korea exported over 230,000 tons of HRC to the EU. This amount is likely to clear customs starting in April, due to shipping times and the quota running out on February 20. South Korea’s quota for April-June will drop from 186,357 tons to 161,143 tons starting April 1, after a safeguard review. Previously, it was expected to access an extra 30% of the “other countries” quota, which had a balance of 880,120 tons as of March 27. But now, it has no access, also due to the safeguard review.
A trader said they are asking customers to delay clearing South Korean HRC until July 1. Exports from South Korea to the EU in March are expected to be high, market participants say. There are also commitments for April and May shipments, arriving in July, when there might be no quota left. The total remaining quota will roll over to the final period in April, adding some balance to the adjusted “other countries” quota, now at 856,770 tons for April-June. The European Commission will end the rollover mechanism on July 1, but access to the remaining quota will stop on April 1.
Continuing the rollover mechanism for the last quarter shows India could import over 750,000 tons in total. Unused volume has built up over the past five months during its anti-dumping investigation. In the end, no taxes were applied to Indian mills, and trade has continued since then.
South Korean suppliers are limiting offers of hot-rolled steel coils (HRC) to the EU. They believe they have used up their safeguard quota for the April-June quarter and at least part of the July-September quarter in the region.
South Korea has become one of the EU’s biggest HRC suppliers in recent months because its quota is reliable. The country’s steel shipments are usually managed by its steel association and divided among producers, according to market sources.
However, as they prepare for the final quota quarter of the year—April to June—when suppliers with country-specific quotas can usually access one-third of the “other countries” quota, South Korean producers have gone beyond their normal share.
In the January-March quarter, South Korea used up its quota by mid-February. Many buyers turned to South Korea after Japan’s supply became unreliable due to an ongoing anti-dumping investigation at the time. That investigation, which also included Egypt, India, and Vietnam, confirmed high expected taxes on Japan, especially on Nippon Steel, whose imports now face a 33% tax. Buyers see South Korean and Japanese HRC as similar in quality, suitable for many uses, with a good range of products and value.
In January and February, South Korea exported over 230,000 tons of HRC to the EU. This amount is likely to clear customs starting in April, due to shipping times and the quota running out on February 20. South Korea’s quota for April-June will drop from 186,357 tons to 161,143 tons starting April 1, after a safeguard review. Previously, it was expected to access an extra 30% of the “other countries” quota, which had a balance of 880,120 tons as of March 27. But now, it has no access, also due to the safeguard review.
A trader said they are asking customers to delay clearing South Korean HRC until July 1. Exports from South Korea to the EU in March are expected to be high, market participants say. There are also commitments for April and May shipments, arriving in July, when there might be no quota left. The total remaining quota will roll over to the final period in April, adding some balance to the adjusted “other countries” quota, now at 856,770 tons for April-June. The European Commission will end the rollover mechanism on July 1, but access to the remaining quota will stop on April 1.
Continuing the rollover mechanism for the last quarter shows India could import over 750,000 tons in total. Unused volume has built up over the past five months during its anti-dumping investigation. In the end, no taxes were applied to Indian mills, and trade has continued since then.
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