Issue 23, 2024 - This week's editorial: US and Europe’s HRC tariffs likely to reshape global market flows

India may see a rise in hot rolled coil steel imports as an unintended consequence of Europe’s residual tariff-rate quota (TRQ) capping. This could lead to a re-direction of HRC imports from Southeast Asian and Asian countries into India. 

The European Commission’s decision last week to introduce a 15% cap per origin over the “other country” TRQ for HRC sparked some excitement in the EU market, as suppliers believed prices would rise amid limited imports. 

A market participant in India notes that a rise in HRC imports could occur from countries such as Vietnam, Japan, Korea and others, being redirected into India. Another trader says: “[India’s] HRC imports could grow if Asian mills drop prices further.”

Indian producers have been outspoken about their concern over rising imports from Asian and Southeast Asian countries. In May, Indian steel representatives warned of the potential impact of imports into India following the US tariff hike on China-origin steel.

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