- Taiwan records fastest depletion rate at 58.7% of annual allocation
- Indonesian arrivals expected to accelerate quota consumption in H2 CY’26
SteelDaily: South Korea’s stainless steel flat products import quotas from China, Taiwan, and Indonesia were nearly half exhausted as of 21 June 2026, raising concerns over quota availability and import pricing dynamics during the second half of the year.
Based on customs clearance data and import reports, cumulative stainless steel hot-rolled and cold-rolled imports from the three countries reached an estimated 144,427 tonnes (t) by 21 June. This represents 47.8% of the estimated annual quota volume of 302,000 t, comprising 170,000 t from China, 60,000 t from Taiwan, and 72,000 t from Indonesia.
The calculation excludes Chinese 200-series cold-rolled stainless steel, which is not subject to anti-dumping regulations. Imports of Chinese 200-series CRC totalled 17,450 t during January-21 June 2026 and were therefore excluded from quota consumption calculations.
The pace of quota utilisation accelerated during June. Estimated quota consumption stood at 127,320 t, or 42.2% of annual allocations, during January-May. Additional customs clearances of approximately 17,100 t between 1-21 June pushed utilisation higher by around 5.6 percentage points.
Taiwan records fastest quota depletion
Among major suppliers, Taiwan registered the highest quota utilisation rate. Imports from Taiwan reached 35,211 t as of 21 June, comprising 17,339 t of hot-rolled coils and 17,872 t of cold-rolled coils. This equates to 58.7% of Taiwan’s estimated annual quota allocation of 60,000 t.
During 1-21 June alone, Taiwan shipped an additional 7,784 t into South Korea, including 3,445 t of hot-rolled material and 4,339 t of cold-rolled products. At the current pace, market participants expect Taiwan’s remaining quota volume to tighten considerably during the second half of the year.
China and Indonesia maintain larger quota availability
China’s estimated quota-consuming volume stood at 75,465 t as of 21 June. Imports included 33,024 t of hot-rolled products and 59,891 t of cold-rolled products, after excluding 17,450 t of non-regulated 200-series CRC. As a result, China’s quota utilisation rate was estimated at 44.4%, leaving relatively higher availability compared with Taiwan.
Indonesia recorded cumulative imports of 33,751 t, comprising 19,880 t of hot-rolled and 13,871 t of cold-rolled products. Current utilisation stood at 46.9% of its annual allocation.
However, Indonesian customs clearances during 1-21 June were limited to only 163 t of cold-rolled products. Market participants indicated that several Indonesian cargoes are scheduled to arrive toward the end of June, which could significantly increase utilisation rates once reflected in customs statistics.
Market implications
The rapid depletion of quota allocations, particularly from Taiwan, is likely to influence contract negotiations and sourcing strategies during the second half of 2026. Buyers may increasingly evaluate alternative origins as available quota volumes narrow and landed costs rise.
Market participants estimate that Taiwan’s remaining quota availability has fallen to approximately 25,000 t, while China and Indonesia continue to offer relatively greater room for additional shipments.
At the same time, weakening global stainless steel prices and a stronger US dollar against the Korean won are increasing import costs. Industry sources noted that third- and fourth-quarter transaction prices could stabilise around $2,200-2,300/t, potentially limiting buying interest despite available quotas.
Outlook
South Korea’s stainless steel quota utilisation rate is expected to rise further once end-June Indonesian arrivals are reflected in customs data. Taiwan is likely to remain the fastest-depleting origin, while China and Indonesia may gain a larger share of second-half bookings due to comparatively higher remaining quota availability. Exchange-rate movements, stainless steel pricing trends, and quota availability will remain key factors shaping import flows through the remainder of 2026.
Note: This article is published as part of a content exchange agreement between SteelDaily and BigMint.
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