Turkish imports overwhelm new EU quotas

For many steel products Turkey will be the main origin of EU steel imports seeking access to the new Steel Regulation’s tariff-rate quota (TRQ) “overflow” facility for countries that hold a free trade agreement (FTA) with the bloc.

Nine of Turkey’s new country-specific TRQs, which were revealed by the European Commission on June 30, were exceeded in the opening days of the July-September quota period. Turkish flat products, in particular, dominated the over-allocation of the new quotas, which came into force on July 1 alongside a 50% above-quota tariff.

An extended “blocking period” means that above-quota imports from the first 14 days of the period, which are subsequently allocated for customs clearance, will attract a portion of the EU’s new 50% tariff.

Under the new Regulation, countries with an import share of above 5% for a particular steel product, in the 2022-2024 reference period, attracted a country-specific quota (CSQ).

In total, Turkey’s TRQs have been reduced by around 39%, to approximately 2.7m tonnes per year, well below the EU’s 47% overall reduction in tariff-free quotas. Nonetheless, Turkish-origin imports overshot the country’s new TRQs by approximately 438,000 tonnes, in total, during the first fortnight of the EU’s new tariff regime.

Turkey’s 160,574-tonne quota for 1A Hot Rolled Sheets and Strips for the July-September period was exceeded by approximately 135%. The 69,925-tonne 4A Metallic Coated Sheets quota was also exceeded by over 85%, while the 4B Metallic Coated Sheets quota was almost 90% oversubscribed.

In the long product categories, Turkey’s 59,919-tonne rebar quota was exceeded by almost 80% by July 13, as the 61,147-tonne Non Alloy and Other Alloy Wire Rod TRQ was exceeded by over 50%.