According to sources in the market, during a review of the functional protective measures of the European commission, liberalization of quotas for hot -rolled rental (HRC) may be canceled. This in itself would lead to a reduction in import volumes by about 15% from the introduction of quotas.
European Association of manufacturers Eurofer requested a reduction in quotas for a flat rental by 50% to level the share of imports since 2012-14, When, according to her, the visible consumption was the last time corresponded to the current level. Eurofer estimates a share of a flat roll for almost 28% this year compared to an average share of a little more than 16% in 2012-14.
eurofer excludes HRC, designed for internal processing into cold-rolled rolls and hot-valuable rolls from calculation of a common market supply. Including HRC for internal processing, the share of imports increased with a little less than 6% from 2012-14. up to more than 14%.
the average level of imports of hot rolons in the period from 2012 to 2014 amounted to 4.73 million tons/year, which is about 85% lower than 8.8 million tons, which probably probably will be imported in 2024. This involves importing about 300,000 tons in December 2024, calculated taking into account the reduction of quotas during this period, taking into account some additional material from countries freed from protective measures in relation to hot -rolled rolls.
Sources suggest that That there can be no complete reduction in the volume of quotas compatible with the Rules of the WTO, but that the abolition of liberalization and some other measures of fine settings could lead to a significant revision. The proposal to reduce the limit of “other countries” to 7.5% from the current 15% will actually halve potential volumes from sellers within this quota, such as Japan, Vietnam and Egypt. The removal of passing unused quotas and the inclusion of previously liberated countries in the quota would also affect. Import can potentially be limited by a certain share of the total supply, some say, although it is unclear how this can be administered.
The commission received significant feedback from buyers in the market, given the significant reduction that Eurofer achieves and and Its potential influence. Some buyers suggest that 2017 or 2018 could be a more accurate reference point than 2012-14. During this period, imports grew by almost 32% from 6.6 million tons, while the market supply was reduced by about 28%, which was due to the fall of internal production by almost a quarter.
