The European Commission has decided to extend import quotas for steel slabs of Russian origin for another four years, according to an official notice published on Monday 18 December in the Official Journal of the EU.
Details of the new twelfth package of EU sanctions against Russia in the response to its military actions in Ukraine was published in the Official Journal of the EU on 18 December. They included restrictions on imports of certain ferroalloys and pig iron.
While the main purpose of the sanctions is to restrict trade flows, sources were quick to note that the latest package would extend existing quotas on Russian slabs until 2028.
It is noteworthy that the EU document states that from 30 September 2024 to 30 September 2028, a total of 10.9 million tons of semi-finished steel products falling under the code CN 7207 12 10 (steel slabs) will be allowed onto the EU market, without restrictions.
However, annual quotas will be reduced each subsequent year.
It is noteworthy that in the period from October 1, 2024 to September 30, 2025, 3.185 million tons of Russian slabs will be allowed to be imported into the EU ; 2.998 million tons from October 1, 2025 to September 30, 2026; 2.623 million tons from October 1, 2026 to September 30, 2027; and 2.061 million tons in the period from October 1, 2027 to September 30, 2028, according to the Official Journal of the EU.
The current quota for Russian slabs, which is valid until September 30, 2024, is set at level 3 .75 million tons.
Meanwhile, the import of billets of Russian origin (code 7207 11) will be prohibited from April 1, 2024. Quotas on billets and slabs were part of the Commission's eighth package of sanctions against Russia in response to its war in Ukraine.
The lobby to expand quotas was led by European processors, the main consumers of slab, namely Belgium, Italy, and the Czech Republic.
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Following the news of the extension of the slab quota, market sources told Fastmarkets that they saw an immediate increase in prices for slabs of Russian origin in the EU.
It is noteworthy that the only supplier of slabs in the EU not subject to sanctions, increased Italian offers to $640 per ton CFR, which matches offers from "premium mills" from China for sheet-quality slabs, sources said.
In the week leading up to December 15, December offers from this supplier to Italy stood at 600 dollars per ton CFR.
