EU intends to adopt specific quotas for HRC, Turkey may be seriously affected
3 Jun 2020 13:59 reported by Ana Lee
After reviewing the safeguards, the EU notified the WTO that it would propose to adjust the safeguard measures for 26 catalogs of steel products. The major change was that hot-rolled coil (HRC) products will adopt country-specific quotas instead of current global quotas.
The target of the new measure was those countries whose import volume reached a certain level between 2015 and 2017. The remaining countries will continue to use global quotas.
Turkish steel mills have already faced anti-dumping investigations by the EU, which might also be subject to anti-subsidy investigations in the near future. Therefore, it was expected that the new quota system will hit Turkish steel mills the most.
Market participants said that this had a great impact on Turkey, not only will the sales of HRC be greatly reduced, but the anti-dumping duty was expected to be retrospectively levied, which will put extra pressure on sales in the short term.
A trader stated that Turkey steel mills will be eager to sell if the existing quota was not enough, but as now other threats came, buyers will become erratic. In the coming weeks, Turkish HRC exports will face a severe situation.
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