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According to the published documents, Germany and the Netherlands have obtained the right to a large amount of steel export quotas to the United States from January 1, 2022, after the United States ended the current system of imposing Article 232 on EU steel in accordance with a bilateral agreement. US Department of Commerce website. Sweden and Austria’s quotas are also seen as clearly advantageous in certain products.
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Germany, the EU's largest steel producer, has the largest share of the total annual tariff quota (TRQ) exported from the region to the United States, at 3.33 million tons. A list shows that Germany will have the right to export a total of 907,893 metric tons of various products. Its quota includes 121,185 metric tons of tinplate, 86,221 metric tons of cut length and 85,676 metric tons of line pipe with an outer diameter of more than 406.4 mm per year.
The EU’s second largest steel producer, Italy, has a total quota of 360,477 metric tons, which is far behind Germany and is exceeded by the Netherlands’ total quota of 507,598 metric tons. The Netherlands is home to Tata Steel's main IJmuiden steel mill, a traditional exporter of hot rolled coil to the United States.
The annual quota for sales of hot-rolled sheets from the Netherlands to the United States is 122,529 metric tons, of which 72,575 metric tons of hot-rolled coils and 195,794 metric tons of tinplate.
The TRQ system will replace the existing 25% tariff imposed by former US President Donald Trump on EU steel imports under Article 232 legislation in March 2018. The total annual import volume under the 54 product categories under TRQ is set at 3.3 million tons and allocated to the U.S. Department of Commerce to indicate that it is based on EU member states and conforms to the historical period of 2015-2017.
"Splitting is a simple calculation that brings tariff quotas closer to the traditional EU export flow to the United States (per member state)," said a spokeswoman for the European Steel Association Eurofer.
However, the United States continues to impose 232 tariffs on steel imports from other countries and regions, although the United States and Japan are currently negotiating on alternative trade arrangements.
However, according to a source in the German plate market: “Germany does not have many tonnages. Salzgitter still has high anti-dumping duties, and Dillinger may benefit from it. The same is true for Industeel, even though Belgium’s quotas are not large. NLMK is also the case. So. Denmark."
Plate sources are referring to the tariffs on fixed-length or processed plates of some European plate manufacturers: the United States imposed anti-dumping duties on several manufacturers in 2017.
The annual TRQ of Austrian hot dip flat rolled products is 22,903 metric tons, and the annual TRQ of oil well tubing is 85,114 metric tons. Earlier this month, Herbert Eibensteiner, chief executive of steelmaker voestalpine, described the country’s US quota levels as “very suitable for Austria”. Ebensteiner stated that despite the “heavy administrative burden” of voestalpine’s export exemption and the 40 million euros (45.23 million U.S. dollars) pipeline tax bill for annual exports to the U.S. oil and gas sector, voestalpine continues Export to the United States.
Some of the larger country quotas include Sweden’s quota for cold-rolled sheet and other products of 76,750 metric tons, hot-rolled coil quota of 32,320 metric tons, and hot-rolled sheet quota of 20,293 metric tons. The Belgian quota includes 24,463 metric tons of cold-rolled plates and other products, 26,610 metric tons of hot-rolled plates, 13,108 metric tons of cut-length plates, and 11,680 metric tons of stainless steel flat-rolled products.
The TRQ of the Czech Republic will allow the annual export of 28,741 metric tons of standard steel rails, 16,043 metric tons of hot-rolled bars, and 14,317 metric tons of line pipes with an outer diameter not exceeding 406.4 mm. For cut-length plates, France’s TRQ is 73,869 metric tons, Denmark’s TRQ is 11,024 metric tons, and Finland’s TRQ is 18,220 metric tons. France also received 50,278 tons of hot-rolled bars.
Line pipes with an outer diameter of more than 406.4 mm in Greece received 68,531 metric tons of TRQ. Luxembourg received a quota of 86,395 metric tons for sending angles, profiles and profiles to the United States, and a quota of 38,016 metric tons for sheet piles.
A trade source predicts that the US’s annual quota of 67,248 tons of EU-produced rebar will not have a significant impact on the Turkish rebar export market.
He said: “One of the effects that weakens Turkish rebar on the United States is Tosyali, Algeria," he added. Although Tosyali rebar does impose a 25% tariff on products exported to the United States, they also do not have anti-dumping and countervailing duties. So buyers are in the US and are already booking rebar from Algeria.
"As we all know, the European quota in the United States will be around 90,000 metric tons, so there will be no impact," he added.
The Ministry of Commerce clarified on its website that tariff quotas will be calculated for each year of the measure and managed on a quarterly basis. For the unused TRQ quantity in the first quarter of any year, up to 4% of the quota allocated for that quarter will be carried forward to the third quarter. The amount of unused TRQ in the second quarter of any year (subject to the same restrictions) will be transferred to the fourth quarter, and any unused TRQ amount (subject to the same restrictions) in the third quarter will be transferred to the first quarter of the next year.
"Tariff quotas will be allocated to each product category of each EU member state on a first-come, first-served basis. The United States will provide updated information on the quarterly quota usage for each product category on public websites, including information that will not be used The number of TRQs shifted from one quarter to another," it said.
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