EU Q2 steel import quotas see early exhaustion across multiple categories

• Strong demand drives early EU quota exhaustion
  
  
• Tightening availability to support EU prices and curb inflows
  
  

SteelOrbis: Within the first week of the new EU quota period (April 1-June 30), import activity has been notably strong, with several steel product quotas already exhausted and others rapidly nearing their limits. Shipments from key exporting countries, including India, China, Vietnam, Turkey, and Algeria, have either exceeded allocated volumes or recorded utilisation rates above 70% across multiple categories.

India has emerged as one of the most prominent contributors to the early exhaustion of quotas. The country has exceeded its allocation of 225,305 metric tonnes (mt) for hot rolled coil (HRC) under category 1A, with as much as 349,580 mt currently awaiting customs clearance at EU ports. Similar trends are visible in other product segments, with stainless bars and light sections surpassing their 31,765 mt quota, and seamless stainless tubes exceeding the 5,886 mt limit. Volumes pending clearance for these products stand at 53,355 mt and 8,972 mt, respectively. In addition, India has overshot the 7,428 mt quota for tin mill products under the "other countries" category, with 10,711 mt awaiting custom clearance.

China has also recorded significant overutilization across multiple categories, with quotas of 128,348 mt for metallic coated sheets (4B), 34,427 mt for other seamless pipes, and 7,006 mt for sheet piling fully exhausted. Corresponding volumes of 294,920 mt, 46,470 mt and 7,029 mt are currently held at EU ports pending clearance.

Turkey has followed a similar trend, exceeding its quotas of 98,153 mt for wire rod, 84,033 mt for hollow sections, and 14,946 mt for large welded tubes (25B). Volumes awaiting clearance for these products have reached 131,157 mt, 112,679 mt, and 26,572 mt, respectively. In addition, the country has exceeded the 7,428 mt quota for tin mill products under the other countries category, with 10,324 mt awaiting clearance.

Under the "other countries" allocation, the 104,884 mt quota for metallic coated sheets (4B) has also been exceeded, with 112,532 mt awaiting clearance. Vietnam has similarly surpassed its 10,725 mt quota for organic coated sheets under the same category, with 17,590 mt awaiting clearance.

Outlook

The early exhaustion of several EU steel import quotas highlight strong import demand and front-loaded shipment activity. With sizable volumes already awaiting customs clearance, availability across several categories is expected to tighten further in the coming weeks, potentially limiting additional inflows from key suppliers. This could shift buying interest toward domestic supply, lending near-term support to EU steel prices. Meanwhile, market participants are likely to adopt a more cautious stance on shipments, particularly in products nearing full utilisation, as the risk of delays and additional costs at EU ports increases.

Note: This article has been written in accordance with a content exchange agreement between SteelOrbis and BigMint.