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Business Standard
20 hours ago
- Business
- Business Standard
DGTR suggests safeguard duty on imports of some steel items for 3 years
The commerce ministry's arm, DGTR, has recommended final imposition of a safeguard duty on imports of certain flat steel products for three years to protect domestic manufacturers from sudden jump in the inbound shipments. The duty was recommended by the directorate general of trade remedies (DGTR) in its final findings of a probe initiated on a complaint by the Indian Steel Association. Based on the preliminary findings, the government in April has already imposed a provisional 12 per cent safeguard duty for 200 days. Now in its final findings, the DGTR has concluded "that there is a recent, sudden, sharp and significant increase in imports of PUC (product under consideration) into India at the cumulative level as a result of unforeseen threaten to cause serious injury to the domestic industry/producers," the DGTR has said in a notification. It has recommended a 12 per cent duty in the first year, 11.5 per cent in the second, and 11 per cent in the third year. The Indian Steel Association on behalf of its members including ArcelorMittal Nippon Steel India, JSW Steel, Jindal Steel and Power and Steel Authority of India filed an application seeking imposition of safeguard duty on imports of non-alloy and alloy steel flat products. The applicant alleged that there was a sudden, sharp and significant increase in the volume of imports, which caused serious injury to the domestic industry in India. The applicant also stated that imports took place in such increased quantities and under such circumstances that cause and threaten to cause serious injury to the domestic industry. The DGTR said that taking into account the current serious injury to the domestic industry, and the imminent threat of injury due to the imports of subject goods, the fair selling price and, considering competing interest of all stakeholders, the authority recommends imposition of the duty on certain steel products. Commenting on this, think GTRI said that India's trade watchdog DGTR has confirmed safeguard duties on a wide range of steel imports, rejecting submissions from over 250 stakeholders, including major automakers and electronics firms. It said that the probe, launched in December 2024, covered hot-rolled and cold-rolled products, metallic and colour-coated steel. Chinese exports of these items rose to 110.7 million tonnes in 2024, up 25 per cent over 2023, much of it redirected to India, GTRI said. "GTRI opposed the move, warning it (imposition of final safeguard duty) would raise input costs, hurt export competitiveness, and squeeze downstream users," the think tank's founder Ajay Srivastava said. GTRI argued imports were predictable, not "sudden"; that domestic injury was overstated; and that duties would cripple auto, engineering, and construction sectors, he said.
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Business Standard
21 hours ago
- Business
- Business Standard
Steel firms hail govt for recommending safeguard duty on flat steel imports
The domestic steel industry has welcomed the commerce ministry's move to recommend imposition of a safeguard duty on imports of certain flat steel products, saying that such measures help India become self-reliant in the sector. In a statement, Naveen Jindal, President of Indian Steel Association (ISA), said recommendation of a safeguard duty on flat steel imports for three years is a welcome step. "While the proposed 12 per cent duty may not fully reflect the geopolitical context where 25 per cent is often considered the norm, it demonstrates clear government support for using such measures to promote Aatmanirbhar Bharat in steel," he said. Jindal, who is also the chairman of Jindal Steel, said introducing a safety net through minimum import prices, below which the recommended duty would be triggered, is also a positive move to protect and support the downstream industry. The Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce, has recommended final imposition of a safeguard duty on imports of certain flat steel products for three years to protect domestic manufacturers from sudden jump in the inbound shipments. DGTR is the apex authority for administering all trade remedial measures, including anti-dumping, countervailing duties and safeguard measures. The duty was recommended by the DGTR in its final findings of a probe initiated on a complaint by the Indian Steel Association. Based on the preliminary findings, the government in April has already imposed a provisional 12 per cent safeguard duty for 200 days. Now in its final findings, the DGTR has concluded "that there is a recent, sudden, sharp and significant increase in imports of PUC (product under consideration) into India at the cumulative level as a result of unforeseen threaten to cause serious injury to the domestic industry/producers," the DGTR has said in a notification. It has recommended a 12 per cent duty in the first year, 11.5 per cent in the second, and 11 per cent in the third year. The Indian Steel Association on behalf of its members including ArcelorMittal Nippon Steel India, JSW Steel, Jindal Steel and Power and Steel Authority of India filed an application seeking imposition of safeguard duty on imports of non-alloy and alloy steel flat products. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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Business Standard
a day ago
- Business
- Business Standard
Govt recommends safeguard duty on imports of certain steel items for 3 yrs
The commerce ministry's arm, DGTR, has recommended final imposition of a safeguard duty on imports of certain flat steel products for three years to protect domestic manufacturers from sudden jump in the inbound shipments. The duty was recommended by the directorate general of trade remedies (DGTR) in its final findings of a probe initiated on a complaint by the Indian Steel Association. Based on the preliminary findings, the government in April has already imposed a provisional 12 per cent safeguard duty for 200 days. Now in its final findings, the DGTR has concluded "that there is a recent, sudden, sharp and significant increase in imports of PUC (product under consideration) into India at the cumulative level as a result of unforeseen threaten to cause serious injury to the domestic industry/producers," the DGTR has said in a notification. It has recommended a 12 per cent duty in the first year, 11.5 per cent in the second, and 11 per cent in the third year. The Indian Steel Association on behalf of its members including ArcelorMittal Nippon Steel India, JSW Steel, Jindal Steel and Power and Steel Authority of India filed an application seeking imposition of safeguard duty on imports of non-alloy and alloy steel flat products. The applicant alleged that there was a sudden, sharp and significant increase in the volume of imports, which caused serious injury to the domestic industry in India. The applicant also stated that imports took place in such increased quantities and under such circumstances that cause and threaten to cause serious injury to the domestic industry. The DGTR said that taking into account the current serious injury to the domestic industry, and the imminent threat of injury due to the imports of subject goods, the fair selling price and, considering competing interest of all stakeholders, the authority recommends imposition of the duty on certain steel products. Commenting on this, think GTRI said that India's trade watchdog DGTR has confirmed safeguard duties on a wide range of steel imports, rejecting submissions from over 250 stakeholders, including major automakers and electronics firms. It said that the probe, launched in December 2024, covered hot-rolled and cold-rolled products, metallic and colour-coated steel. Chinese exports of these items rose to 110.7 million tonnes in 2024, up 25 per cent over 2023, much of it redirected to India, GTRI said. "GTRI opposed the move, warning it (imposition of final safeguard duty) would raise input costs, hurt export competitiveness, and squeeze downstream users," the think tank's founder Ajay Srivastava said. GTRI argued imports were predictable, not "sudden"; that domestic injury was overstated; and that duties would cripple auto, engineering, and construction sectors, he said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
a day ago
- Business
- Time of India
Commerce ministry recommends safeguard duty on imports of certain steel items for 3 years
The commerce ministry's arm, DGTR, has recommended final imposition of a safeguard duty on imports of certain flat steel products for three years to protect domestic manufacturers from sudden jump in the inbound shipments. Independence Day 2025 Modi signals new push for tech independence with local chips Before Trump, British used tariffs to kill Indian textile Bank of Azad Hind: When Netaji Subhas Chandra Bose gave India its own currency The duty was recommended by the directorate general of trade remedies (DGTR) in its final findings of a probe initiated on a complaint by the Indian Steel Association . Based on the preliminary findings, the government in April has already imposed a provisional 12 per cent safeguard duty for 200 days. Now in its final findings, the DGTR has concluded "that there is a recent, sudden, sharp and significant increase in imports of PUC (product under consideration) into India at the cumulative level as a result of unforeseen threaten to cause serious injury to the domestic industry/producers," the DGTR has said in a notification. It has recommended a 12 per cent duty in the first year, 11.5 per cent in the second, and 11 per cent in the third year. Live Events The Indian Steel Association on behalf of its members including ArcelorMittal Nippon Steel India, JSW Steel , Jindal Steel and Power and Steel Authority of India filed an application seeking imposition of safeguard duty on imports of non-alloy and alloy steel flat products. The applicant alleged that there was a sudden, sharp and significant increase in the volume of imports, which caused serious injury to the domestic industry in India. The applicant also stated that imports took place in such increased quantities and under such circumstances that cause and threaten to cause serious injury to the domestic industry. The DGTR said that taking into account the current serious injury to the domestic industry, and the imminent threat of injury due to the imports of subject goods, the fair selling price and, considering competing interest of all stakeholders, the authority recommends imposition of the duty on certain steel products. Commenting on this, think GTRI said that India's trade watchdog DGTR has confirmed safeguard duties on a wide range of steel imports, rejecting submissions from over 250 stakeholders, including major automakers and electronics firms. It said that the probe, launched in December 2024, covered hot-rolled and cold-rolled products, metallic and colour-coated steel. Chinese exports of these items rose to 110.7 million tonnes in 2024, up 25 per cent over 2023, much of it redirected to India, GTRI said. "GTRI opposed the move, warning it (imposition of final safeguard duty) would raise input costs, hurt export competitiveness, and squeeze downstream users," the think tank's founder Ajay Srivastava said. GTRI argued imports were predictable, not "sudden"; that domestic injury was overstated; and that duties would cripple auto, engineering, and construction sectors, he said.
Mint
24-04-2025
- Business
- Mint
India's steel safeguard duty offers a short-term fix—but will it be enough?
India has fired a warning shot in the global steel trade war. In a move to stem the tide of cheap foreign supply, the Indian government has imposed a 12% provisional safeguard duty on flat steel imports from China and Vietnam. The duty, effective for 200 days, is aimed at shielding domestic producers from a surge in underpriced imports. The timing is significant. India has become a net importer of steel for the second year in a row, with imports hitting a nine-year high of 9.5 million tonnes in FY25, while exports slumped over 60% to 6.9 million tonnes. The surge has raised alarms over dumping—especially from China, which has been offloading excess capacity globally as domestic demand slows and tariff tensions with the US escalate. Read this | India eyes inclusion of 25% steel, aluminium tariffs in BTA talks with US So what does the safeguard duty mean for India's metal companies? Here's a closer look. China, South Korea, and Japan accounted for nearly 80% of India's steel imports in FY25. While India is the world's second-largest steel producer, it has been unable to shield its market from a surge in low-cost supply—particularly flat products used in construction, infrastructure, and manufacturing. Much of this supply is aggressively priced, with Chinese producers ramping up exports instead of cutting output as domestic demand slows. Some shipments are even routed via Vietnam, further muddying trade flows. India's domestic producers have taken a hit, triggering calls for government intervention. The Indian Steel Association—which represents major players such as JSW Steel, Jindal Steel, and Steel Authority of India—urged the government to step in as falling prices eroded profit margins. Hot-rolled coil (HRC) prices, for instance, dropped to a four-year low of ₹ 46,500 per metric tonne in September 2024, before rebounding to ₹ 51,300 in April 2025 as expectations of a safeguard duty took hold. Industry capacity utilization also declined, slipping to 78% in FY25—its lowest level in four years—amid waning demand. In response, the Directorate General of Trade Remedies launched a probe in December 2024 into a sharp spike in imports of alloy and non-alloy flat steel products, which are widely used across sectors such as automobiles, capital goods, and farm equipment. Adding urgency was the US decision to levy steep duties on Chinese steel, prompting fears that Beijing would flood alternative markets—including India—with its surplus production. To counter the flood of cheap imports, India on 21 April imposed a 12% provisional safeguard duty on alloy and non-alloy flat steel products from China and Vietnam. The measure, valid for 200 days, is intended to create a price floor and restore a level playing field for domestic producers. But the levy isn't blanket. To avoid disrupting legitimate trade, the government has carved out exemptions for higher-priced shipments. For instance, no duty applies if hot-rolled coil (HRC) is priced above $675 per tonne—ensuring that only underpriced, potentially dumped imports are penalised. Analysts expect the duty to sharply curtail imports—by as much as 50% in FY26, according to rating agency Icra Ltd—giving local producers room to reclaim market share. Read this | Steel stocks rally on safeguard duty proposal—but the real test lies ahead Domestic demand is projected to grow 7–8%, and capacity utilisation could climb back to 83%, up from a four-year low of 78% in FY25, it added. That could translate into stronger pricing power and margin recovery, especially with input costs like iron ore and coking coal still near cyclical lows. JSW Steel , with its heavy tilt toward flat products, stands to gain the most. Steel Authority of India Ltd (SAIL) may see the biggest earnings bounce, though off a low base. Jefferies estimates that a 15% duty could lift HRC prices by 10% and boost Ebitda by 15–40%. But rising mineral levies from state governments could erode some of those gains. Read this | Tamil Nadu's limestone tax: A crushing blow to cement margins? Short-term relief may not translate into sustained earnings growth. Analysts caution that global oversupply, tepid infrastructure spending, and muted domestic demand could keep a lid on steel prices. India's steel consumption rose just 3.4% in FY25, a sharp slowdown from 11.7% the year before. Despite the safeguard duty, domestic hot-rolled coil prices remain steep—about 18% higher than comparable imports. Even after the duty, they hold a 6% premium, leaving little headroom for further price hikes. That could blunt the impact on profitability. There are structural hurdles too. HDFC Securities notes that nearly two-thirds of India's steel imports come from countries with Free Trade Agreements—such as Japan, South Korea, and Mauritius—that are exempt from the new duty. In fact, South Korea has now overtaken China as India's top steel supplier. Still, the sector's long-term outlook remains intact. India's per capita steel consumption is just 93 kg—far below the global average of 220 kg. The government aims to raise this to 158 kg by 2031 under the National Steel Policy, banking on rising urbanisation, industrial growth, and infrastructure buildout. For more such analyses, read Profit Pulse . For now, the safeguard duty offers a temporary shield. But the industry's fortunes will ultimately hinge on a revival in domestic demand, macroeconomic stability, and how China manages its slowing economy. About the author: Madhvendra has over seven years of experience in equity markets and has cleared the NISM-Series-XV: Research Analyst Certification Examination. He specialises in writing detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments. Follow him on LinkedIn. Disclosure: The writer does not hold the stocks discussed in this article. The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
