India remains cautious about the EU's proposed adjustment of its steel import safeguard measures. The proposal involves new quota caps and adjustments to unused quotas, which may further squeeze India's steel exports.

According to documents confirmed by the WTO, hot rolled coils (HRC, Category 1A) will be split into 1A (regular HRC) and 1B (high-value steel under CN 7212 60 00). China, Egypt, and India will lose some exemptions in multiple categories and be included in the tariff rate quota (TRQ) list because their import share exceeds the 3% threshold. India's HRC quota will be cut by around 23.7 % to 225,080 tons in April-June, and the quotas for cold-rolled coil (CRC), steel plate, and hot-dip galvanized steel coil will also be reduced.

Market participants worry that the move will lead to oversupply in the Indian market and affect price stability, while exporters will face greater sales pressure. The market players are watching the final decision of the EU and the results of the HRC anti-dumping investigation to assess the impact on the Indian steel industry.