EU import quotas for flat carbon steel should be cut by 50pc to create a "healthier" balance between domestic supply and imports, European steel association Eurofer said in a filing to the European Commission as part of its functional safeguard review.
The Eurofer response was sent on 10 January, but only made public on the case file today, much to the chagrin of importers. The last day for feedback was 13 January, after distributors' association Eurometal requested an extension, which was granted for just three days, over a weekend.
It also suggested that there should be individual quotas on Chinese product, even where dumping duties are in place, and that Chinese material processed elsewhere be counted against this quota with dumping duties applied.
The current level of imports is resulting in excess supply of 8.75mn t — 4mn t on hot-rolled coil (HRC), 1.2mn t on cold-rolled coil (CRC) and 2.8mn t on hot-dip galvanised (HDG), Eurofer said.
Eurofer reiterated its belief that 25pc duties are not sufficient and that an average rate of 34pc should be applied, with no pro-rata duty on the first day of a new quarter. It also said the 15pc country caps imposed on the other countries' quota for HRC be applied to other categories, such as CRC and HDG. On CRC, a 10pc cap should be imposed, it said. On HRC, that other countries' cap should be lowered from 15pc to 7pc.
The carry-over of unused quotas should also be stopped, if not capped, the association said, adding that there should be no liberalisation of quota volume in the last year of the safeguard.
