EU Adjusts Steel Safeguard Quotas Following Import Ban from Russia

The European Union has adjusted the import quotas included in the EU’s steel safeguard. Following the introduction of import bans on steel from Belarus & Russia, quotas previously assigned to these two countries will be reallocated to other exporting countries on a proportional basis. Quotas will be redistributed by product category and will be awarded to other exporting countries proportionally, based on the latter’s share of imports in 2021. The changed quotas will apply as of the start of the new quarter of the safeguard, which is on 1 April 2022. They will help to avoid a shortage in steel supply in the EU. Such redistribution ensures that the existing steel quotas can be effectively used to the maximum, as based on the needs of EU steel users reflected in the 2021 trade flows. Example: Belarus had a yearly quota of 1 million tonnes in category X and this must now be redistributed. In 2021, Turkey was the source of 35% of the entire category X steel products entering into the EU under the steel quotas, while India was the source of 20%. The 1 million tonnes formerly allocated as a quota to Belarus will now be split according to the other countries’ share of imports in 2021. Turkey will get an additional 350,000 tonnes on top of their existing quotas, while India will get an additional 200,000 tonnes. For the quota period from April to June this year, the Commission previously announced that Russia had quotas of 412,317 tonnes of HRC, 59,311 tonnes of rebar, 82,008 tonnes of wire rod, 23,603 tonnes of hollow sections and 6,538 tonnes of large welded tubes quotas, while Belarus had quotas of 65,026 tonnes of wire rod and 13,947 tonnes of hollow sections quotas. The new quota volumes of certain steel products for the next quota period can be seen in the tables below. Substantial changes in quarterly quotas have been announced for HR, plates. Rebar & Wire Rods ----HR----Turkey – Old 430,246 tonne, Increase 103,450 tonneIndia - Old 273,178 tonne, Increase 105,306 tonneSouth Korea – Old 170,592 tonne, Increase 36,202 tonneUK – Old 142,706 tonne, Increase 23,502 tonneSerbia – Old 151,443 tonne, Increase 33,110 tonneOther countries – Old 1,120,626 tonne, Increase 110,748 tonneTurkey – Old 86,412 tonne, Increase 25,148 tonneUkraine – Old 40,229 tonne, Increase 10,237 tonne --------Plates--------Ukraine – Old 216,156 tonne, Increase 40,654 tonneKorea - Old 88,517 tonne, Increase 7,589 tonneIndia - Old 49,127 tonne, Increase 11,822 tonneUnited Kingdom - Old 49,110 tonne, Increase 4,136 tonneOther countries - Old 297,914 tonne, Increase 19,167 tonne -------Rebar-------Bosnia and Herzegovina – Old 31,087 tonne, Increase 4,822 tonneMoldova - Old 25,981 tonne, Increase 7,105 tonneOther countries – Old 126,179 tonne, Increase 11,999 tonneUK - Old 167,756 tonne, Increase 29,127 tonneUkraine – Old 112,798 tonne, Increase 15,806 tonneSwitzerland - Old 123,996 tonne, Increase 29,245 tonne -----------Wire Rod-----------Turkey – Old 107,758 tonne, Increase 28,231 tonneMoldova – Old 63,325 tonne, Increase 14,586 tonneOther countries – Old 111,148 tonne, Increase 30,039 tonneTurkey - Old 90,057 tonne, Increase 20,720 tonneUK - Old 48,031 tonne, Increase 6,372 tonneNorth Macedonia – Old 26,588 tonne, Increase 4,071 tonne The import bans on steel from Russia and Belarus provide a three-month transition period to wind down existing contracts. During the transition period, any goods bought in these countries under contracts established prior to the cut-off date, including ancillary contracts necessary for the execution of existing contracts, will still be allowed to enter the EU.

EU Adjusts Steel Safeguard Quotas Following Import Ban from Russia

Strategic Research Institute

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