EU HRC imports rise in 2024 despite trade measures

Hot-rolled coil (HRC) imports into the EU rose by 3.3pc on the year to 8.9mn t in 2024, the second-highest level on record.

Protectionist measures, including anti-dumping (AD) duties and tightened safeguard quotas, shifted trade flow somewhat, but overall volumes increased throughout the year.

Ukraine, Turkey, and Australia were the top HRC suppliers to the EU in December, as larger exporters, such as Vietnam, Japan and Egypt, filled their quota limits earlier in the quarter. As a result, EU buyers turned to other sources.

In August, the EU started an AD probe into HRC imports from Vietnam, India, Egypt and Japan. Imports from these regions, especially India, remained strong until November as large shipments were still being cleared. But concerns over potential retroactive duties led to a sharp drop in purchases from these countries late last year, with further declines expected this quarter. The four countries accounted for 3.46mn t, or 38pc, of total EU imports over 2024.

The introduction of a 15pc cap on the other countries quota in July 2024 also impacted volume from the main sellers in that bracket — Egypt, Japan, Taiwan and Vietnam.

Imports of cold-rolled coil (CRC) increased more sharply, by 13.6pc to 172,000t, supported by south east Asian sellers, especially Vietnam and Japan, attempted to compensate for low HRC sales due to AD investigation.

On the longs side, wire rod imports grew by 17pc in December to 2.65mn t in 2024. Quotas significantly reduced shipments from Egypt, Algeria and Malaysia, as they fall under the "other countries" category, but this was offset by higher sales from Vietnam, Turkey and Ukraine, leading to an overall increase in wire rod imports.

On the export side, HRC exports fell by 4.3pc in 2024 on the year to 2.36mn t, as rising Chinese exports at lower prices made it harder to compete. A further decline is expected in 2025, as the US — one of the EU's major HRC export markets — has imposed a 25pc duty on all steel imports.

The US tariffs are also expected to reduce European long steel exports. In 2024, European rebar exports rose by 12pc to nearly 1mn t, with the US as the key export market. The new duties are likely to lower rebar sales to the US as well.

Throughout 2024, CRC and hot-dip galvanised (HDG) exports increased, supported by strong demand from Turkey and significant CRC purchases from Mexico in December. On the semi-finished side, slab sales rose due to orders from the UK.

By Elif Eyuboglu