According to a report by the leading analytics and consulting firm World Steel Dynamics (WSD) released in February, steel imports into the European Union (EU) are expected to be significantly impacted, particularly in the second quarter. Imports of steel flat products may decline by approximately 25%, totaling around 2 million tons compared to the first quarter. This decline is likely to affect the balance of supply and demand as well as price trends.

The EU has decided to review tariff rate quotas (TRQs), which has led to a gradual decrease in import volumes. Among these products, certain steel items will face strict restrictions, with the import volumes of cold rolled coil (CRC) and hot dip galvanized coil (HDG) expected to decline by 15-20% and 40-50%, respectively.

Some market participants indicated that the import environment will face new quota regulations, coinciding with a reduction in shipments from Asia and Turkey. As a result, import volumes may drop sharply to approximately 7 million tons in the second quarter, and the pressure on market supply will gradually become apparent.