Wire rod buyers demand an increase in EU quota

European wire rod buyers are asking the European Commission to revise its limit on product imports, as the available quota lags far behind actual demand.

According to Eunirpa, the European Association for Non-Integrated Wire Rod Producers, wire rod imports in 2018 will be 2.6 million tonnes, while the EU's July cap calls for a quota of around 1 million tonnes. Wire rod offers from outside the EU are still very limited and come from a small number of countries.

Eunirpa has been warning about wire rod shortages for two years even before the quota was introduced. And the US import ban did not help the situation. “We can conclude that there is absolutely no redirection of volumes previously imported to the US to the EU,” the commentary says. Countries such as Mexico, Japan, Canada or Brazil have shown no interest in exporting to Europe, the document says.

“We are convinced that the EU’s only right decision will be to increase the actual quota to realistic imports in 2018, combined with a global agreement,” he continues.

According to an observer from Germany, the current quota is about 95% exhausted for imports that should have arrived at the port in early February. The remaining volume is currently 42,400 tons.