Turkey's steel sector could face losses after cuts to EU quotas: industry chief
2019-09-18 09:54:06 [Print]
New restrictions on imports to the European Union next month may further damage the Turkish steel sector, even as it seeks new markets to compensate for losses from U.S. and EU tariffs, Turkey's Steel Exporters' Association (CIB) chief said.
In February, EU quotas for 26 grades of steel were set at the average level of imports in 2015-2017 plus 5%, with further 5% hikes due in July and in July 2020. Imports of steel beyond these quotas are subject to a 25% duty. But the European Commission later cut this year's quota increase to 3% from 5%, effective Oct. 1. It also limited any one country to a 30% share of imports of hot-rolled flat steel per quarter.
CIB Chairman Adnan Aslan said the move will lead to a contraction in Turkey's flat steel and rebar exports.
"We filled the quota for long products in a month. We switched to a new one-year quota in July. We will most likely complete that in September," Aslan said. "Because the quotas are full, Turkey will not be able to export long products to the EU until July 2020."
Turkey's steel exports to the EU fell 0.5% to 5.1 million tonnes in the first eight months of the year, CIB data showed. More than a third of Turkey's 21.4 million tonnes of steel exports in 2018 were to the EU.
In February, EU quotas for 26 grades of steel were set at the average level of imports in 2015-2017 plus 5%, with further 5% hikes due in July and in July 2020. Imports of steel beyond these quotas are subject to a 25% duty. But the European Commission later cut this year's quota increase to 3% from 5%, effective Oct. 1. It also limited any one country to a 30% share of imports of hot-rolled flat steel per quarter.
CIB Chairman Adnan Aslan said the move will lead to a contraction in Turkey's flat steel and rebar exports.
"We filled the quota for long products in a month. We switched to a new one-year quota in July. We will most likely complete that in September," Aslan said. "Because the quotas are full, Turkey will not be able to export long products to the EU until July 2020."
Turkey's steel exports to the EU fell 0.5% to 5.1 million tonnes in the first eight months of the year, CIB data showed. More than a third of Turkey's 21.4 million tonnes of steel exports in 2018 were to the EU.
