Turkey has essentially filled its 301,537 mt EU rebar quota around 100 days since the restriction came into force on July 1 this year. As of October 8, the remaining volume is 1,490 mt, with 1,411 mt of rebar currently waiting at ports for customs procedures. The new rebar quota period will start in July next year, and until then Turkey will be barely present in the EU market.
Some limited sales potential might be provided by the “others” quota to be opened up for third parties in April 2020. Accordingly, Turkish mills might activate their negotiations for rebar sales to the EU in late February next year, SteelOrbis understands. However, Turkey will be able to use a maximum of only 30 percent of the volume remaining by then. The initial tonnage for the “others” quota is 135,728 mt.
In the wire rod segment, the situation is more favorable as Turkey has around 30 percent of its quota volume left or 100,529 mt out of the initial tonnage of 312, 081 mt. However, trading activity in the EU destinations is reportedly weak, partly due to the local markets in the EU being slow. SteelOrbis understands.