British steel traders & importers have concerns about UK steel quotas

07/01/2021

After Brexit, British steel traders and importers faced increased uncertainty about guaranteed quotas from January to March because the UK quota system had not been updated on Monday.

Due to technical issues, the UK quota system could not be updated, so even if some product quotas have been exhausted, quota requirements will be accepted.

Once the quota requirements are put forward, the goods will be in a state of „free circulation” and can no longer be placed in warehouses or bonded warehouses to avoid paying duties.

Market participants will have to pay special attention to rebars, hollow sections, and hot-dip galvanized coils. Under the European steel safeguard, the quotas for these three types of steel are usually exhausted fast.

Trading companies believed that hollow sections’ quotas may be exhausted quickly, but not as fast as European quotas.

On Monday, the European quota system showed that more than 106,000 tons of Turkish hollow sections were waiting for distribution and Russia’s rebar quota was about to run out.

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