EU proposes lower HRC import quota

The European Commission has surprised market participants by maintaining a global quota for hot-rolled coil in its safeguard review.

The commission said the share for any exporting country in any given quarter will be capped at 30pc of the total. The volume for 1 July 2019 to 30 June 2020 will be lowered marginally to 8.47mn t from 8.64mn t previously, and the measure will come into force on 1 October this year.

The commission factored in more recent imports in its safeguard review, and has reduced its relaxation for all products from 5pc to 3pc across all product categories, noting last year was a record for shipments to the EU. The commission also said Turkey, India and Serbia have been replacing imports from countries with anti-dumping and countervailing duties, and that Russia has recovered a "substantial part of its historical trading volume" despite the duties in place.

The 3pc means quotas for the remaining period from 1 October 2019 will be revised down to ensure the total increase in the allowance is 3pc over the year.