Turkey has recently exhausted a significant portion of its European Union (EU) steel import quotas for the second quarter of 2024. The country made substantial purchases, particularly of rebar, wire rod, hollow sections, and metal-coated sheets, marking a key development in global steel trade dynamics.
Key Steel Products Impacted
By April 11, 2024, Turkey had already exhausted its quotas for several steel products. The European Commission (EC) reported that Turkey used its full allocation for rebar (94,398 tons), wire rod (98,054 tons), hollow sections (83,949 tons), and other flat products. Notably, Turkey also consumed the entire 20,955-ton quota for metal-coated sheets (4B) and almost completed the 49,432-ton quota for gas pipes, with 99.6% already selected.
This marks a significant shift in Turkey’s steel trade strategy, as the country has taken full advantage of the EU’s tariff-free steel import quotas. The decision to purchase a broad range of steel products, including rebar and wire rod, highlights Turkey’s growing demand for steel and its active role in the EU steel market.
Other Countries Following Similar Trends
Other nations, such as Vietnam, South Korea, and India, have also exhausted their own EU steel quotas. Vietnam reached its limit for metal-coated sheets (4B), while South Korea utilized its full quota for tin products. India allocated substantial volumes for organic-coated sheets and stainless bars, further tightening the EU’s steel import landscape.
In response to these developments, the European Commission has imposed stricter regulations to protect the EU’s domestic steel industry. Starting in April 2024, the EC will limit steel imports even further. New restrictions have been put in place for residual quotas (from “other countries”) across 16 product categories, reducing the total import quota per country to 13-30%, depending on the steel product.
Implications for Global Steel Trade
The tightening of steel import quotas by the European Commission is a strategic move to protect the EU’s steel sector from external competition. Additionally, the EC has lowered the annual liberalization rate from 1% to 0.1%, limiting the total volume of duty-free steel imports. Countries will also no longer be able to rely on unused quotas from other nations, including Russia and Belarus.
With these new restrictions, Turkey’s strategy of maximizing its steel imports in the first quarter of 2024 could be a response to upcoming challenges in sourcing steel at favorable rates. The evolving trade restrictions and shifting supply chains are expected to have significant implications for steel markets across Europe and beyond.
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