Steel exports to the EU down 1.3%... “The decline has eased, but quota cuts are a major burden”

[Financial News] Some say that the sharp decline in South Korea’s steel exports to the European Union (EU) immediately after the introduction of the EU’s new steel measures has eased, but that the burden from quota cuts remains substantial. The EU is also expected to tighten regulations in the future, including expanding the Carbon Border Adjustment Mechanism (CBAM) and introducing the Industrial Accelerator Act (IAA).
According to Korea International Trade Association statistics on the 31st, steel product exports to the EU totaled $247 million last month, down 1.3% from the same month a year earlier. Exports in July, when the new steel measures took effect, plunged 41.2% year on year to $188 million. The year-on-year decline in export value narrowed to 14.1% in August, when exports totaled $223 million, and to the 1% range in September. Export tonnage followed a similar pattern, falling 44.8% year on year in July, 14.0% in August and 2.7% in September.
Exports to the EU remain below last year’s level. From January through September this year, cumulative export value was $2.23 billion, down 5.4%, while volume fell 10.7% to 2,253,133 metric tons.
Since July 1, the EU has been implementing measures to cut the duty-free quota (TRQ) for imported steel products by 46% and raise tariffs on volumes exceeding the quota from 25% to 50%.
South Korea’s dedicated quota fell 19.7%, from 2,581,000 metric tons to 2,073,000 metric tons. Exporting countries can also secure a shared quota by competing on a first-come, first-served basis, but observers say South Korea is at a disadvantage compared with neighboring European countries that can transport products quickly. The Ministry of Trade, Industry and Energy recently told the EU that the system governing shared quotas needs improvement. It asked the EU to ensure that domestic industries, including steel, are not subjected to discriminatory treatment under regulations such as CBAM and IAA.

[email protected] Kang Gu-gwi Reporter