Coil prices in India and the EU have decreased due to proposed changes in protective measures
Export prices for Indian hot-rolled coils to Europe decreased by 5-10 dollars per ton compared to the previous week, while prices for cold-rolled coils and other flat rolled products remained stable, Kallanish reports, citing sources.
Sources note that the drop was mainly caused by the recent proposal of the European Commission to reduce quotas and double tariffs on steel. As well as the continuing uncertainty regarding the methodology of the Carbon Boundary Adjustment Mechanism (CBAM).
In early October, the EU proposed reducing duty-free imports by 47% to 18.3 million tons per year, increasing the duty outside quotas from 25% to 50% and introducing a "melt and pour" rule of origin. The current system of protective measures expires in June 2026 (see "Callanish passim").
Indian exporters remain cautious and adhere to a wait-and-see strategy, awaiting further clarity on the allocation of quotas to specific countries under the newly proposed protective quota system.
Exporters of engineering products have also called on the Indian government to make concessions on the proposed quota system as part of the ongoing negotiations on a free trade agreement between India and the EU, the sources add.
As of Tuesday, the supply of Indian HRC producers decreased by 5-10 dollars per ton per week to 595-600 dollars per ton.t CFR Antwerp, or USD 535-540/t FOB Mumbai, for grade S235, shipping in November/December.
According to EU tariff data collected by Eurometal, India's quota for HRC (category 1A) for October-December was 85% available, with 193,000 tons unused and 100 tons awaiting distribution. October 13.
CRC offers remained stable at $735-740/t cfr in Antwerp or $675-680/t fob in Mumbai. The EU CRC quota (category 2) was 98% available, while the unused 161,800 tons remained unused.
The HR tariff offers also did not change over the week and amounted to 710-715 dollars per ton cfr in Antwerp or 650-655 dollars per ton on fob terms in Mumbai for grades S275/S235.
Hot prices for galvanized coils also remained stable at $785-800 per ton at the cfr price in Antwerp or $725-740 per ton at the fob price in Mumbai for grades Z275/DX51 with a thickness of 1 mm, while pre-painted galvanized coils were more expensive by $200 per ton compared to HDG for grades Z140 0.5 mm thick.
With a metal coating. (Category 4A) was 94% available with 50,900 tons unused.
While category 4B was 97% available. The quota for organic coating (category 5) was exhausted as of October 13.
In Vietnam, Indian-origin HRC offers were presented for the price