As India Imposes 12% Safeguard Duty On Steel Imports

Metal stocks rallied in early trade on Tuesday, climbing as much as 3%, after govt imposed a 12% provisional safeguard duty on steel imports

 

Metal stocks rallied in early trade on the BSE on Tuesday, climbing as much as 3%, after the Indian government imposed a 12% provisional safeguard duty on select steel imports to curb surging inbound shipments. The move, detailed in a Finance Ministry notification issued on Monday, aims to protect the domestic steel industry from cheap overseas supplies.

Tata Steel led the gains, rising 2.6% to hit a day’s high of Rs 142.85. Shares of SAIL and Jindal Stainless also advanced by 2.5% each, while Jindal Steel and Power gained 1.9%. NALCO rose 1.6% to Rs 163.90.

The notification stated: “…the Central Government, after considering the said findings of the Director General (Trade Remedies), hereby imposes… a provisional safeguard duty at the rate of twelve per cent ad valorem." The duty will remain effective for 200 days, unless revoked or amended earlier.

India, the world’s second-largest producer of crude steel, remained a net importer of finished steel for a second consecutive year in FY25, with imports hitting a nine-year high of 9.5 million metric tons, according to provisional government data.

The safeguard duty follows a recommendation last month by the Directorate General of Trade Remedies (DGTR), which proposed the levy in response to a spike in low-cost imports. The investigation, launched in December 2024 following a complaint from the Indian Steel Association, covers ‘Non-Alloy and Alloy Steel Flat Products’ used across sectors including construction, automotive, fabrication, and electrical equipment.

The DGTR began its probe in December 2024 after receiving a complaint from the Indian Steel Association, representing companies such as ArcelorMittal Nippon Steel India, JSW Steel, Bhushan Power & Steel, Jindal Steel and Power, and SAIL.