Overview of HRC Exports
Japan, Vietnam, and Taiwan are likely to exhaust their 141,850-ton safeguard duty-free allowance under the EU’s ‘other countries’ quota by October 1.
Japan’s HRC Exports
Japan exported nearly 250,000 tons of hot-rolled coil (HRC) to the EU in June and July. Data from Global Trade Tracker indicates that an estimated 39,000 tons were pulled back from customs clearance in July. Volumes at EU ports from Japan could exceed the quota volume by more than double.
Vietnam’s HRC Exports
Vietnam exported over 80,000 tons in the same period, with at least 65,000 tons left over from the previous quota. This brings the total exports to slightly above the quota. Additional Vietnamese material that had not been presented to customs in July may also arrive for clearance in early August.
Taiwan’s HRC Exports
Taiwan is on track to exhaust its quota, having exported nearly 150,000 tons in June and July, along with another estimated 45,000 tons pulled back from customs in July. However, not every ton is likely to clear due to the absence of a dumping investigation, which may lead importers to wait until January for clearance.
Egypt’s HRC Exports
Data from Egypt are not yet available, but Argus calculated that nearly 27,000 tons were pulled back in July. Egypt benefits from shorter transit times and can continue selling to the EU without incurring duties.
Overall HRC Imports in the EU
Between June and August, over 280,000 tons were exported from Brazil to the EU and over 70,000 tons from China. The EU imported record amounts of HRC in the first seven months of this year, totaling over 6.2 million tons, which is around 400,000 tons more than the same period last year. In 2021, the record year for EU HRC imports, only 5.6 million tons were imported in this timeframe.
Advocacy for Further Import Restrictions
The European steel producers’ association, Eurofer, is lobbying for additional import restrictions. This comes after the implementation of a 15% cap on sellers into the other countries’ quota and the initiation of a dumping investigation against Egypt, Japan, India, and Vietnam.