The European Commission has sent member states a draft proposal to extend the steel import safeguards for another three years, according to sources. The Commission is also expected to increase the quota volumes by three percent. The quotas are due to expire on June 30, and so the market is currently waiting and for now even EU buyers are hesitating to import for the fourth quarter for now.
The import quotas were expected to be extended for one year: however, market insiders believe that this would have created much uncertainty.
If the volume increase applies to products of all origins and not only to those that have not been subject to antidumping or countervailing duties, as has been rumored previously, this will be good news especially for Turkey and India, SteelOrbis understands.
It should also be noted that there have also been talks regarding the lifting of the Section 232 measures by the US, which prompted the EU to take action to protect its domestic market against trade diversion in the first place.
Recently, the UK also extended steel import quotas for some products for another three years, while removing the measure for some other products. The country imposed its own quota system after Brexit.