The Indian government has introduced a 12% provisional duty on specific flat steel imports for 200 days starting from 21 April, following recommendations by the Directorate General of Trade Remedies (DGTR). This measure, designed to protect the domestic steel industry, applies to products under HS codes 7208, 7209, 7210, 7211, 7212, 7225, and 7226. The duty is only enforced if the import price falls below defined thresholds, such as $675/t CIF for hot-rolled coils (HRC) and $824/t CIF for cold-rolled coils.
The safeguard duty comes in response to increased imports, particularly from China and other Asian suppliers, which pressured local HRC prices to multi-year lows in 2024. Domestic steelmakers sought protection, prompting the DGTR to launch an investigation in December 2024. HRC prices rebounded in March due to rumors of the duty and further increased after the proposal on 18 March.
India's steel imports grew by 15% year-on-year in fiscal 2024-2025, totaling 9.5 million tons. South Korea was the top supplier, accounting for 30% of finished steel imports, while China remained a major supplier due to its weak domestic market. Among developing countries, only China and Vietnam will be subject to the duty.
Industry reactions to the safeguard measure were mixed. While some expect steel mills to raise prices immediately, others believe increases will occur in May. Tata Steel's CEO, T.V. Narendran, expressed support for the decision, citing its potential to ensure fair competition, sustain the industry, and align with India's vision of becoming self-reliant in steel production.
