The quota for European hot-rolled coil under category 1A has been exhausted by India following the start of the new quota period on April 1, according to the latest data published by the European Commission.
India had a total quota of around 225,305 mt that appeared to be over-subscribed in the first few days, a similar trend to the quota from the prior quarter.
The exhaustion comes ahead of the widely expected safeguard measure changes from July 1, which would see the European Commission cut quotas by almost 50%, increase the out-of-quota duty rate to 50% from the current 25%, and look at introducing a melt-and-pour origin rule.
Any additional material from India that is cleared before June 30 will now incur a duty of 25%. Importers will also need to budget for the purchase of CBAM certificates in February 2027 to cover for embedded emissions in material that has been imported in 2026.
After the first quarterly CBAM price was confirmed at Eur75.36/mtCO2e, importers at least have a firmer basis to calculate their 2027 costs using default values, but uncertainty still surrounds the use of actual emissions values, in particular with the speed of the verification process for exporting mills.
The quota for Turkey has also seen high rates of utilization since April 1, with a balance of 169,607 mt from a total allocation of 398,355 mt, not including over 18,000 mt that is awaiting clearance.
Taiwan has a balance of around 71,100 mt from a total allocation of 111,491 mt, but other country-specific quotas are largely untapped in a time of import uncertainty.
Since the start of the Middle East war, fresh import deals have been scarce as freight cost volatility and longer lead times for certain routes dampen interest, which, sources said, has shifted focus into sourcing some material domestically instead.
With a two-week ceasefire announced by the US and Iran, importers will be evaluating the situation to see whether the risk of ordering material from certain regions will be reduced.
Platts, part of S&P Global Energy, last assessed imported HRC in Northern Europe at Eur550/mt CIF Antwerp, and in Southern Europe at Eur540/mt CIF Southern Europe, both up Eur35 month over month.
Author: Riley Waters
