India's steel import landscape could undergo significant changes due to the European Union's recent decision to cap the residual tariff-rate quota (TRQ) for hot rolled coil (HRC) imports.
The European Commission's proposal to extend the EU safeguard measure on steel until June 30, 2026, and introduce a 15% cap per origin over the "other country" TRQ for HRC, is expected to have unintended consequences.
Market participants anticipate a potential redirection of HRC imports from Southeast Asian and Asian countries into India, which may affect the domestic market. Indian steel producers have expressed concerns over the rise in imports, especially following the US tariff hike on China-origin steel. With India not having implemented trade remedial actions on steel in recent years, the industry is vulnerable to what is termed as "predatory" imports, which could impede the nation's ambitious steel capacity expansion plans.
