EU Steel Imports: Indonesia's Response to Demand

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European buyers are increasingly sourcing hot rolled coil (HRC) from Indonesia, as the latest EU steel imports rules tighten access from key traditional suppliers.

Indonesia Emerges as Key Steel Source

New restrictions from the European Commission, including antidumping duties and updated safeguard quotas, are forcing buyers to look for alternatives. Indonesia, exempt from new duties, has rapidly filled this supply gap.

The country exported more than 400,000 tonnes of non-alloy and other alloy hot rolled coil to Europe in 2024. This figure reflects a 76.1% increase year-on-year, with further growth expected. These materials meet EU CE-marking and 3.1 inspection certification standards.

According to MEPS analyst Chris Jackson, many buyers have spent early 2025 searching for consistent coil sources. He noted that Indonesia quickly became a preferred option due to its growing capacity and trade-friendly status.

Indonesia remains classified as a ‘developing country’ under the EU’s safeguard framework. Therefore, it avoids country-specific import caps and residual quota limits, helping buyers secure volumes without penalty.

Revised EU Safeguards Reshape Steel Imports

From April 1, the EU introduced several key rule changes. These include a ban on accessing residual quotas in Q4 for nations that exceed their annual allocation. The quota liberalisation rate also drops from 1% to 0.1% in July.

At the same time, the cap for “other countries” in the hot rolled coil category decreased from 15% to 13%, limiting flexibility further.

Meanwhile, antidumping duties were imposed on Egypt, Japan, and Vietnam. These provisional duties apply for six months while the EU assesses long-term measures.

Egypt: 12.8% for all suppliers
Vietnam: 12.1%, with Hoa Phat Dung Quat exempt
Japan: Between 6.9% and 31.8%, depending on the mill

Nippon Steel, Daido Steel, and JFE Steel Corporation face the steepest duties. These actions reduce competition and redirect buyer interest to untaxed suppliers like Indonesia, Malaysia, and Thailand.

Price Pressure and Shifting Trade Dynamics

European mills, led by ArcelorMittal, responded by raising HRC list prices. The current price stands at EUR 680–700 per tonne, depending on the region. Producers have also restricted spot market availability to support these price levels.

However, domestic prices now face competition from lower-cost Asian HRC. For many European service centres, Indonesian coil offers cost relief, especially as they struggle to pass on earlier price hikes to end customers.

The combination of reduced quota access, higher tariffs, and increased EU pricing will likely reshape the import landscape throughout 2025. Buyers are expected to continue turning to Southeast Asian steel as long as trade policies favor alternative suppliers.

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