In a major boost to India’s steel sector, stocks of leading steel companies rose by up to 7% on March 19, 2025, following a recommendation by the Directorate General of Trade Remedies (DGTR) to impose a 12% safeguard duty on certain steel imports for a period of 200 days. This move aims to protect domestic steel manufacturers from the increasing flood of cheaper imports, mainly from China, South Korea, and Japan.
The decision has sparked significant stock gains among major steel players. Steel Authority of India Limited (SAIL) saw its stock price jump by 5%, trading at ₹114.40, up from ₹108.91. Tata Steel’s shares climbed by 2.97%, reaching ₹158.60, while JSW Steel increased by 2.84%, trading at ₹1,030.45. Meanwhile, NMDC Steel experienced an impressive surge of 8.33%, reaching ₹36.25, up from ₹33.56.
The Background of the Safeguard Duty
The DGTR’s recommendation follows an investigation into the sharp rise in imports of certain steel products such as hot-rolled coils, cold-rolled coils, and color-coated sheets. This surge in imports, primarily from countries like China, South Korea, and Japan, has been putting considerable pressure on local steel manufacturers, leading to a decline in production and threatening jobs in the domestic sector.
The safeguard duty aims to level the playing field for Indian steelmakers by temporarily reducing the influx of these cheaper imported goods. The duty will last for 200 days, during which time local manufacturers hope to regain market stability. However, it’s important to note that the 12% safeguard duty is lower than the 15% to 25% range that many industry experts had initially hoped for. Despite this, the industry has welcomed the recommendation, viewing it as a positive step toward addressing the impact of these imports.
What’s Next for the Steel Industry?
The proposal is now set to go to the Ministry of Finance for approval. If passed, it could help Indian steel producers recover and stabilize steel prices within the country. The temporary safeguard duty will provide much-needed protection to the domestic market, encouraging fair competition and giving local manufacturers a chance to regain lost ground.
Experts believe that while the safeguard duty may not be a complete solution to the problems caused by rising imports, it will certainly provide relief for the steel industry. As steel stocks continue to rise, the market is keenly watching for the next steps in the ongoing battle to protect local industry.
