EU Safeguard Duty on Ferro Alloys – What It Means for India?

By Kshitij Pandey ·

EU Safeguard Duty on Ferro Alloys – What It Means for India?
 
  1. India’s Duty-Free Quotas (TRQs):
    These are the exact annual quotas India can export to EU without any duty:
    • Silico Manganese (SiMn): ~31,958 tonnes
    • Ferro Manganese (FeMn): ~17,626 tonnes
    • Ferro-Silico-Magnesium: ~79 tonnes
    (Quotas increase only by 0.1% per year – basically negligible.)

  2. Above these quotas → duty applies
    EU has set minimum “trigger prices.” If Indian exports are priced below these, a variable duty is charged:
    • FeMn threshold → €1,316/t
    • SiMn threshold → €1,392/t
    • FeSi threshold → €2,408/t
    • FeSiMg threshold → €3,647/t

    Duty Formula:
    Duty = (EU Threshold Price – Export Price)

  3. Why this matters for India?
    • India currently exports 30,000–40,000 tonnes per month of Mn alloys to EU.
    • But EU has given only ~50,000 tonnes/year duty-free across FeMn + SiMn.
    • This means a large portion of India’s exports will attract duty, making them costlier and less competitive.
    • Excess material may get diverted back to the Indian or Asian market → downward price pressure.

  4. Duration
    Safeguard is active from 18 Nov 2025 to 17 Nov 2028.