The Council of the European Union has formally adopted a revised tariff-rate quota (TRQ) system set to enter into force on July 1, 2026, immediately after the current safeguard expires on June 30. The new regulation aims to reduce steel import quotas, apply higher duties to imports exceeding quota volumes, and introduce a strict "melt and pour" requirement to ensure traceability. This framework provides greater flexibility by allowing unused quotas to roll over within the same year but firmly limits non-EU influxes and Russian steel dependence. By strengthening import surveillance, these measures provide structural insulation for European domestic mills, allowing them to defend local pricing despite challenging market conditions.

【SMM Steel】The European Commission launched a four-week targeted consultation on June 4 running through July 2 on documentary evidence required to verify the country of melt and pour for steel imports. The consultation engages steel producers traders importers and industry associations. The resulting Implementing Act is scheduled for adoption by August 31 2026 and will take effect on October 1 2026. The melt and pour rule establishes steel origin based on where it was first melted and cast preventing circumvention via minimal processing in third countries. The EU Steel Regulation takes effect July 1 with duty-free import cap of 18.3 million tonnes and 50% tariff on volumes exceeding quotas.

[SMM Analysis] Steel billet sees notable YoY increase, while UAE’s decline hits a new low By product: Steel billet’s increase remains impressive, mainly because previous geopolitical conflicts caused periodic logistical bottlenecks and surging insurance premiums in major billet and slab production areas at some local Middle East EAF mills and BF-based plants. Overseas billet supply faced a vacuum period, directly pushing global buyers to launch massive inquiries with China. Purchasing sentiment strengthened notably in Southeast Asia in particular. According to SMM’s order-taking survey, exports are expected to stay high in the short term. It is also worth noting that Vietnam’s anti-dumping duties on China’s HRC will be implemented on April 17. As a result, total HRC exports to Vietnam in April increased compared with March, driven by a final rush to front-load shipments before the deadline. Exports are expected to pull back again in May. Data Source: SMM, General Administration of Customs By country: Djibouti’s increase topped the list. Its product mix chart clearly shows that HRC (42%) and steel billet (30%) are the dominant products. As the “Gateway to East Africa” and a transshipment hub, Djibouti itself lacks large-scale consumption capacity. This surge is essentially because repeated Red Sea tensions caused large vessels to unload and transship directly in the Mediterranean or south of the Suez Canal, with Djibouti serving as a safe transit point serving East African inland infrastructure projects such as Ethiopia, or shipping onward via smaller vessels to North Africa. As a global shipping and trade settlement center, Singapore saw an increase of 290,000 mt, mainly due to centralized procurement and trade settlement by ASEAN and Chinese-invested construction projects in Singapore, which provided marginal support for China’s exports of bars, wire rods, and other infrastructure-related finished steel products. The UAE dropped 870,000 mt, and Saudi Arabia dropped 450,000 mt. This was primarily due to geopolitical uncertainties in the Middle East, compounded by excessive stockpiling by major Middle Eastern buyers earlier to avoid logistics risks, pushing the Middle East market into a defensive cycle of destocking and slower purchasing. Data Source: SMM, General Administration of Customs Outlook: SMM’s April orders remain at a high level, and May exports are still expected to see increases. According to SMM’s steel export order data, affected by holidays, steel export orders in April dipped slightly by 0.57% MoM from March. However, it is also learned that shipping to the Middle East is gradually recovering, and orders for slabs destined for Southeast Asia saw a significant increase in April. Taking all factors into consideration—with the new export orders index re-entering expansion territory, the export price advantage still significant, and export order performance excellent—SMM expects that China’s steel exports in May will still see growth, with steel billet continuing to play a dominant role. Data Source: SMM Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. 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The EU's Directorate-General for Trade plans to publish country-specific steel import quotas only in the final week of June, just few days before the safeguard successor measure takes effect on July 1, 2026. The new framework imposes 50% tariffs and reduces import quotas by 47%, placing a significant burden on Europe's steel-processing sector. Critics argue the delayed publication undermines business planning and may conflict with Article 41 of the EU Charter on the right to good administration. Separately, the Commission has launched a consultation on Melt & Pour proof-of-origin requirements under the EU Steel Regulation, running from June 4 to July 2, 2026. The implementing act will determine documentation standards for importers proving where steel was melted, with overly burdensome requirements risking disproportionate impact on SMEs versus large integrated producers.

Shanghai Metals Market (SMM) is pleased to announce that an SMM-led delegation, headed by SMM Copper & Tin Overseas Marketing Manager Jenny Wu and made up of delegates from the Indonesia Critical Minerals Conference & Expo 2026 , paid a formal visit to the Association of Indonesian Tin Exporters (AETI) on June 4. The event was organized by SMM and co-organized by Indonesia’s Ministry of Foreign Affairs, National Economic Council, Indonesia Nickel Miners Association (APNI), and MMR, with the Jakarta Futures Exchange as the strategic partner. This visit underscores SMM’s commitment to fostering long-term, win-win partnerships between Indonesia’s top mineral exporters and worldwide metal industry stakeholders. During the exchange meeting, AETI representatives gave a detailed introduction to the association’s development background and the overall production and operational status of some local tin enterprises in Indonesia. In the Q&A session, the two sides had in-depth discussions on key industry topics such as the progress of Indonesian tin ore mining quota approvals and certain current industry-related policies, sharing market information and exchanging industry perspectives. This face-to-face exchange further strengthened ties between industry partners in and outside China, laying a solid foundation for future cross-regional cooperation and information sharing along the tin industry chain. Introduction to the Association of Indonesian Tin Exporters (AETI) Profile The AETI was established on May 9, 2014, and became a member of the Indonesian Chamber of Commerce and Industry (KADIN) on March 14, 2015. Objectives: Creating productive collaboration between the government, entrepreneurs, and stakeholders Increasing the added value of Indonesian Tin Encouraging the implementation of Good Mining Practices in the tin mining industry Board of AETI Management AETI Members Currently, AETI has 23 member companies of tin exporters spread across the islands of Bangka, Belitung, and Riau AETI Mandate/Functions Advocating for policies that support the national tin industry Maintaining the stability and sustainability of the tin export market Ensuring member compliance with environmental and trading regulations Serving as a forum of communication between tin exporters and the government AETI Internal Activities Training & Development AETI Member Meeting TinSeller–BuyerMeeting Others: Reclamation, Charity, Conference, etc. As a demonstration of AETI's commitment to the environment, we have launched a reclamation program targeting 500 hectares of abandoned post mining land in Bangka Belitung. AETI also runs regular social programs for the community in Bangka Belitung Indonesia Tin Update AETI forecasts that the total national tin production quota in the 2026 Mining Work Plan (RKAB) will be approximately 50,000 tons. This figure has been adjusted from around 53,000 tons in 2025 to stabilize global tin prices. Currently, ten enterprises have obtained RKAB approvals. The Ministry of Energy and Mineral Resources (ESDM) is implementing a more selective evaluation and adjustment of the RKAB. The Indonesian government has introduced these policies to secure future energy reserves while simultaneously controling the structure of tin trade to prevent illegal mining practices. Dynamics of Indonesian Tin Industry Regulatory Policies The dynamics of tin regulation in Indonesia over past years have undergone a massive paradigm shift. Driven by ensuring the sustainability and improving the governance of natural resources, optimizing state revenue and promoting downstream industrialization.

Peru will hold its presidential runoff on June 7, drawing close attention from the mining industry. As the world's second-largest copper producer, any shift in mining policy could have significant implications for global copper supply. Investors are watching proposals related to environmental regulations and resource taxation. The election outcome may influence future copper project development and investment decisions.