India’s trade watchdog has proposed a phased three-year safeguard duty on flat steel imports after finding ‘serious injury’ to domestic players.
Steel stocks traded higher on Monday after India’s trade watchdog proposed a three-year safeguard duty on select flat steel imports, in a move to protect the domestic players from the surge in cheap shipments, especially from China.
Stocks such as JSW Steel was up 2.44% at ₹1,071, Jindal Steel rose 1.4% to ₹989, Steel Authority of India shares were 1.77% higher at ₹122.5, while Tata Steel gained 1.2% to ₹157.27.
Protecting Domestic Players
India’s Commerce Ministry, through its Directorate General of Trade Remedies (DGTR), has recommended a three-year safeguard duty on imports of certain flat steel products. The move follows an investigation triggered by a complaint from the Indian Steel Association (ISA), which flagged the sharp rise in inbound shipments and the pressure on Indian producers.
In April, India imposed a temporary 12% safeguard duty on certain steel imports to counter a surge in cheap shipments, mainly from China.
The DGTR, after assessing the situation, observed that the domestic industry faced “serious injury” and an imminent threat from growing imports. It cited a sudden and significant spike in inflows of flat steel products, which disrupted pricing and market balance.
What Have They Proposed?
The authority concluded that a phased safeguard duty was necessary to ensure fair selling prices and industry stability.
The proposed duties include a 12% levy in the first year, followed by 11.5% in the second year, and 11% in the third year.
The ISA, representing steel majors such as ArcelorMittal Nippon Steel India, JSW Steel, Jindal Steel and Power, and Steel Authority of India, argued that the steep increase in imports of non-alloy and alloy flat steel products had inflicted significant damage.
ASPA’s Anti-Dumping Petition
Earlier this month, the Alloy Steel Producers Association of India (ASPA) reportedly filed an anti-dumping petition with the Ministry of Commerce and Industry’s Directorate General of Trade Remedies, seeking action against rising imports of low-priced alloy steel wire rods from China.
ASPA has 20 members, including major players like JSW Steel, Jindal Steel, Kalyani Steels, Tata Steel, Steel Authority of India, and Mukand Sumi Special Steel.
Not Without Some Pushback
However, the proposal has not gone unchallenged. The Global Trade Research Initiative (GTRI), a policy think tank, criticised the safeguard duty, highlighting its potential to raise input costs for downstream industries.
It noted that submissions from over 250 stakeholders, including top automakers and electronics firms, were dismissed during the probe. The investigation, launched in December 2024, spanned hot-rolled, cold-rolled, metallic, and colour-coated steel products.
GTRI also pointed out that Chinese exports of these products surged 25% in 2024 to 110.7 million tonnes, with a substantial portion redirected to India. GTRI argued that the imports were predictable and not “sudden”. They said that the duties would cripple the auto, engineering, and construction sectors.
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