According to the recently reset EU steel safeguard quota, Chinese imports of automotive-grade hot-dip galvanized coils are unusually low compared to normal levels, showing a continued weak end-user demand.

Since the quota update on January 1, China has used only 35% of its automotive-grade 4B hot-dip galvanized steel quota. In the past, China usually exhausted this quota within two weeks of quarterly quota updates and has been doing so since July 2021.

Both prices and demand have recovered a little so far this year. European mills have better order and lead times, and many announced price increases.