The European Commission, after concluding that the replacement of the US Section 232 measures with tariff rate quotas has not had any effect on the EU safeguard measure which would require an adjustment, has announced the extension of the EU’s safeguard measures encompassing 26 steel product categories until 30 June 2024 and has decided to increase the level of the tariff-rate quotas for all product categories by 4% for the period 1 July 2022 to 30 June 2023 and 1 July 2023 to 30 June 2024. Other countries' quota for hot-rolled coil has been reduced by 200,000 tonnes per quarter and stands at 900,000 tonnes for July-September 2022 quarter. Similarly the quota for April-June 2023 has gone down to 890,500 tonnes from 1.15 million tonne previously. The quotas for October 2022-April 2023 have also been reduced by similar amounts, as have the ones running until end of June 2024.Egypt is no longer being exempt from the quotas for HRC and HDG 4A, and is now importing under the ‘other countries' allocation. Similarly, Vietnam and Ukraine have been added to the list of countries for which the quotas apply. China and Vietnam are no longer subject to the measures for cold-rolled coils. But there are duties on Chinese CRC, which should keep imports at bay.The commission has also decided to include Vietnam, which was exempted from the safeguard measures, in the other countries' quota for hot dip galvanized, ) imports falling under the 4A product category from any origin will be subject to the quotas and 25pc duty on top of any volumes imported outside of the allocation effective from 1 July 2022. However, the quota volume will not be changed, except for the 4% increase in general. Therefore, suppliers under the other countries such as Turkey will be competing with Vietnam in terms of the volumes to the EU. Vietnamese HDG imports have jumped to nearly 1 million tonnes in 2021, from only about 70,000 tonnes in 2020. In January-March quarter of 2022, volumes from Vietnam are at almost 350,000 tonnes.But market participants expressed almost the same sentiment today, saying the changes were not enough to strengthen market dynamics, especially at a time when demand is very sluggish, with some estimating end-user consumption from certain sectors in Europe to be down by 30pc. Some pointed towards the underutilisation of the latest quotas, especially for Indian HRC, as an indicator that the safeguards were not impactful in a declining market.