UK to Remove Turkish HDG Quota Exemption

Why It Matters

Losing the exemption will raise costs for Turkish HDG exporters and tighten supply for UK steelmakers, potentially reshaping the European galvanised‑steel trade landscape.

Key Takeaways

• Turkey loses developing economy HDG exemption.
• UK imports from Turkey rose to 58,030 t in 2025.
• Turkish share reaches roughly 5.8% of UK HDG market.
• Margin pressure expected after quota exemption removal.
• TRA may expand investigation to India, Vietnam, China, others.

Pulse Analysis

The United Kingdom’s hot‑dip galvanised steel market has become a focal point for trade‑policy scrutiny as the Trade Remedies Authority moves to reclassify Turkish imports. Under the current system, developing‑economy nations enjoy a 3% quota exemption, but Turkey’s rapid import growth—up from just over 1,000 t in 2024 to more than 58,000 t in 2025—has pushed its market share to roughly 5.8%. This surge, driven partly by supply disruptions affecting South Korean and Vietnamese shipments, prompted Tata Steel to lodge a formal complaint, triggering the TRA’s review.

For Turkish producers, the loss of exemption threatens a critical export outlet. The UK already accounts for a sizable slice of Turkey’s HDG sales after European demand softened due to the Carbon Border Adjustment Mechanism (CBAM) and existing anti‑dumping duties. Without the quota relief, Turkish exporters will face higher tariffs and tighter import caps, compressing profit margins and forcing a shift back toward the EU or other markets where trade barriers are rising. The anticipated tightening of margins could also ripple through UK downstream users, who may see price increases or reduced availability of coated sheet products.

The TRA’s preliminary findings hint at a broader strategic shift. By signaling a possible extension of the investigation to other developing‑country suppliers such as India, Vietnam, China, Brazil, Egypt, Morocco, Malaysia and South Africa, the authority is laying groundwork for a multi‑country anti‑dumping probe. Such a move would align with global trends of tightening trade remedies in the steel sector, potentially reshaping supply chains and prompting exporters worldwide to reassess market strategies. Stakeholders should monitor the final TRA recommendation slated for late March, as its outcome will influence pricing dynamics, competitive positioning, and regulatory risk across the European galvanised‑steel landscape.