The European Union's rebar import quota for the first quarter of 2025 has already been surpassed, creating financial and logistical challenges for importers. As of January 1, rebar shipments unloaded and cleared at various EU ports have exceeded 160,000 tons—30,000 tons more than the permitted 132,000-ton limit for "other countries," a category that includes Egypt and Algeria.
Due to this excess, importers will now be subject to a 25% customs duty on all shipments surpassing the quota, adding significant cost pressures to steel buyers in the EU market. The situation is discouraging further purchases from these sources, as importers attempt to avoid additional tariff burdens.
Despite the quota limitations, rebar imports from Egypt and Algeria have continued into January, with over 60,000 tons arriving and scheduled for customs declaration and clearance on April 1. This strategy aims to take advantage of the second-quarter quota allocation, but importers remain cautious in committing to new orders.
Meanwhile, competition in the European market is intensifying, particularly with the arrival of high-capacity Chinese rebar shipments. Two vessels have already begun unloading in Rotterdam, with another currently en route to Germany and other European destinations. The influx of Chinese steel could further shift market dynamics, as European buyers explore alternative sources to balance supply chain constraints and tariff implications.
With the rebar quota already exceeded early in the year and Chinese shipments increasing, the European market is set for a period of uncertainty, forcing importers and consumers to navigate evolving trade restrictions and pricing pressures.
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