In a significant development within the European steel market, several countries have surpassed their allocated quotas for hot rolled coil (HRC) imports into the European Union. As of the third quarter, Egypt, Vietnam, Japan, and Taiwan have all exceeded their 15% safeguard quota cap, with India also utilizing over two-thirds of its designated HRC quota.

The European Commission's recent amendment to the Category 1 "other country" quota has set the allowance for these countries at 141,850 tonnes for Q3, following the extension of safeguard measures until mid-2026. This cap was quickly reached, leading to substantial tonnages awaiting customs clearance: Egypt (176,626t), Vietnam (208,880t), Japan (209,403t), and Taiwan (228,520t).

Excess tonnages are now subject to an 8% duty for entry into the EU market or face costly storage until the next quota period. The rapid exhaustion of quotas reflects the intense demand and the challenges posed by the European Commission's stringent measures.