the European Union began to revise its quotas on imports of hot rolled steel on a quarterly basis taking into account the country of origin of steel products, stated in the notice of the world trade organization.
the Total volume of quotas will be reduced is not much, but some integrated exporters, including Turkey, will receive a severe blow to their exports, noted in Argus Media.
duty-free Turkey may send to 1.36 million tons in the European Union in the period from 1 July 2020 to 30 June 2021, compared with 2.1 million tons of supply a year earlier. In the period from July 2019 to March this year were sold 1.47 million tons of hot rolled steel in the EU, which has already exceeded its new annual quota.
the Indian, the volume of hot rolled steel will also be reduced. She can sell 667 978 tonnes in the period from July 2020 to June 2021. In July 2017 - June 2018 India sold 967 596 tonnes in the EU and 793 235 tonnes in July 2018 - June 2019; both figures are above its new quota level.
Significantly reduced the quota for all other countries: delivery volume for each quarter is now about 1 million tons, or slightly below, whereas in the current year the size of more than 2 million tons. Those regions that have exhausted their own volumes, can still fight for the residual quota during the last quarter of the period, but they can be no more than 30% of the import market.
Residual quotas will be slightly modified for certain products. As for rebar, access to residual quotas in the fourth quarter will be limited to the excess of the average quota used by smaller countries that for four quarters; it will reduce the amount of material that can be sold in the EU.
the Proposed changes applied to the import restrictions in the EU, introduced two years ago with the aim to prevent redirection of flow of steel from the U.S. market in the European Union after trump introduced a 25 percent duty on steel imports regardless of the country of origin of steel products.
