EU leaves door open for steel quotas revisions

The EU today said that it will initiate an initial investigation into the definitive steel import quotas that come into effect tomorrow, and may need to adjust the allocated volumes for some products.

The European Commission singled out electrical sheet, metallic coated sheet, tin mill products and wire rod, but said the reviews would apply to all product groups. The first review will begin by 1 July.

The quotas would be revised in the event of an increase or contraction in EU demand for certain products, the imposition of new anti-dumping or anti-subsidy measures, or developments concerning the US Section 232 import duties.

And the EU would consider the measures' effects on "preferential trading partners".

The review clause allows the commission to fine tune the measures in the interests of EU users, exporters and industry associations, a source familiar with the matter said.

Buyers of certain steel products, such as wire rod and galvanised sheet, have been vocal about the adverse effect of shortages in the EU, alleging that domestic production does not meet demand and that the definitive quotas do not allow for sufficient imported volumes.

The commission today said that it had received complaints from several interested parties — following the imposition of the preliminary measures — on expected shortages of some material, but said it rejected the claims and decided against excluding any products because similar or directly competing products are made in the EU.

The final version of the definitive tariff rate quotas — which come into force tomorrow — are nearly identical to the proposed ones, which EU members voted on and approved on 16 January. A key difference is that less volumes have been allocated to subcategory 4A and more to 4B (see table).

Both categories fall under metallic coated sheet, but those in 4A are mainly used in the construction industry and have been subject to anti-dumping duties on Chinese-origin material since 2017, while 4B products are used in the automotive sector. The overall metallic coated sheet quotas volume is unchanged.