EU's plan to extend steel import quotas may lead to a huge deficit in the sector

This would adversely affect competitiveness in the automotive, construction and manufacturing sectors, Assofermet said.

The EU notified the World Trade Organisation and imposed a 15% quota limit on HRC imports from the ‘other countries’ category. The amount of HRC sold to Europe by Vietnam, Japan, Taiwan and Egypt is expected to fall from 3.9 million tonnes to 2.26 million tonnes annually.

Assofermet emphasised that these measures, based on 2015-2017 data, are not appropriate for today's conditions. Rising raw material costs and congestion at ports could cause financial difficulties for importers.

German sources predict that the 15 per cent limit on steel imports from certain countries will lead to supply shortages. These measures, which are subject to approval by EU member states and the WTO, could lead to synchronised increases in steel prices.

Although the exact implementation date of the proposed measures is uncertain, it is clear that they will lead to significant changes in the European steel market. Traders and importers are closely monitoring the possible effects of this situation on the sector.