The Directorate General of Trade Remedies (DGTR), under India’s Ministry of Commerce and Industry, has recommended a provisional 12% safeguard duty on specific steel imports for a duration of 200 days. This measure aims to shield the domestic steel industry from a surge in low-cost imports, primarily originating from China, South Korea, and Japan.
The DGTR’s investigation revealed a significant increase in imports of non-alloy and alloy steel flat products, which has adversely affected local steel producers. The proposed duty targets products such as hot-rolled and cold-rolled coils, sheets, and plates. This initiative seeks to prevent serious injury to the domestic industry and mitigate trade diversions resulting from similar import barriers implemented by other countries.
In response to the announcement, shares of major Indian steel companies experienced notable gains. For instance, Tata Steel’s stock rose by 2.52% to 158.55 Indian rupees, while the BSE SENSEX Index saw a modest increase of 0.20% to 75,449.05. Despite this uptick, Tata Steel’s shares remain 14.11% below their 52-week high of 184.60 rupees, achieved on June 18th.
Industry executives have expressed that, although the proposed 12% duty is lower than the anticipated 15%-25%, it is a positive step toward addressing the challenges posed by cheap imports. The safeguard duty is expected to provide some relief to domestic producers, allowing them to remain competitive amidst increasing imports.
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