Traders are shying away from importing Chinese coated steel sheet used primarily for automotive applications, as preliminary data from the European Commission shows that awaiting allocation volumes have already reached almost 40% of the quota. According to sources, the EC will officially allocate volumes from Monday next week when the blocking period ends, but data on the EC website already shows that awaiting allocation volumes have reached 81,000 tonne for Chinese coated steels in category 4B out of 204,951 tonne of the total import volume for the February 2 to June 30 period.
A German trader said that “I immediately stopped buying category 4B from China.”
Although volumes for that product have actually increased from the proposal stage in December to the final regulation that came into force February 2, trading sources say volumes would still not be sufficient.
A Benelux source said that “Quotas are still low from China. We are wondering whether we’re doing imports [at all]. We’re losing turnover of our business because of quotas.”
However, not only Chinese quotas saw a change from the quota proposal to the final regulation. Also the country-specific quotas and “all other countries” quotas saw changes in the metallic coated sheets categories 4A and B, although most of them decreased in 4A and were increased in 4B.
Sources suggested that car makers were influential during the consultation period between early this year, as category 4B is primarily used for automotive applications and 4A for construction.
Source : SP GLOBAL
Yaang Pipe Industry Co., Limited (www.yaang.com)