Import quotas led to higher prices in Serbia, while demand slowed after May
Demand in the Serbian steel market remained stable until May, but then declined markedly. Meanwhile, price dynamics exceeded broader regional trends due to the impact of import quotas. Serbian industry sources told SteelRadar that the import quota system was initially introduced as a strategic measure to protect domestic production and the country's steel industry. However, they noted that producers who benefited from quota protection and gained a dominant position in the market subsequently increased their prices rapidly. According to sources, these price spikes were caused by the pricing strategies of protected producers, rather than reflecting broader regional market trends. The sources added that importers, end users and other market participants were forced to adapt to these conditions, calling the situation a serious problem that continues to affect the market today. By comparison, Serbia imported about 115,000 tons of rebar and wire rod from Turkey in the year before the quota system was introduced. Under the new regime, imports from Turkey were limited to 6,600 tons of straight rebar per quarter, while wire rod and rebar in rolls accounted for 2,800 tons per quarter. The sources also noted that the closure of the Zenica steel mill in Bosnia and Herzegovina is a separate issue in itself. After the cessation of production, the quota for the import of rebar was recently increased by about 2,000 tons. They added that similar restrictions also apply to products originating from the European Union, while supplies from Italy are subject to the same quota measures. According to industry sources, while steel prices throughout the region generally fluctuated within ± 20 euros per ton, the price dynamics in Serbia significantly exceeded these levels. As for demand, the market remained relatively stable in the first months of the year, but it has slowed down significantly since May.
Author: Editorial staff of SteelRadar
Steelradar.com