Govt extends safeguard duties on imports of steel products for 3 yrs to curb dumping

New Delhi, Dec 31 (PTI) The government has extended safeguard duties on imports of certain steel products for three years, aiming to curb dumping from countries like China and protect domestic manufacturers from a supply glut.

The duties, first imposed as a temporary 12 per cent levy for 200 days in April, will now remain in force until April 2028, according to an official notification.

The safeguard duty will be levied at 12 per cent in the first year (April 21, 2025 to April 20, 2026), reduced to 11.5 per cent in the second year (April 21, 2026 to April 20, 2027), and further lowered to 11 per cent in the third year (April 21, 2027 to April 20, 2028).

Analysts said the shorter duration had created uncertainty among investors, and the new three-year window offers longer-term protection for domestic players.

Reacting to the development, Naveen Jindal, President of the Indian Steel Association (ISA), said the safeguard duty is a calibrated policy measure aimed at maintaining stability in the domestic steel market while ensuring continuity of supply for consumers and infrastructure projects.

Jindal, who is also the Chairman of Jindal Steel, said the diversion of surplus steel capacity into India by China, Japan, Korea and Vietnam has implications for domestic capacity utilisation, investment planning, and employment.

The safeguard duty helps address these pressures by restoring competitive balance and supporting the domestic steel value chain. Given ongoing global supply imbalances, further trade remedies may be considered as part of a broader policy approach to ensure sustainable growth in the steel sector, he noted.

Earlier in April this year, the government had imposed a 12 per cent provisional safeguard duty for 200 days on these steel products.

Last year in December, the DGTR started the investigation into the sudden surge in imports of 'Non-Alloy and Alloy Steel Flat Products', used in various industries, including fabrication, pipe making, construction, capital goods, auto, tractors, bicycles, and electrical panels.

The investigations were conducted following a complaint from the Indian Steel Association on behalf of its members, including ArcelorMittal Nippon Steel India, AMNS Khopoli, JSW Steel, JSW Steel Coated Products, Bhushan Power & Steel, Jindal Steel and Power (now Jindal Steel), and Steel Authority of India Ltd (SAIL).

Import of these products increased from 2.293 million tonnes during 2021-22 to 6.612 million tonnes during the period of investigation (October 2023 to September 2024, and the three preceding fiscal years - 2021-24).

The imports have increased from countries, including China, Japan, Korea, and Vietnam.

DGTR, in its probe, had noted that the objective of the duty is to protect the Indian domestic industry against the surge in imports.

While some big domestic steel makers were advocating for the imposition of the duty, the user industry is strongly against it, as the duty would push raw material prices, impacting their competitiveness.

MSME exporters from the engineering sector had stated that any move to impose additional duties on steel imports would make domestic products uncompetitive and impact the country’s outbound shipments from the sector.

The stock of JSW Steel surged 4.89 per cent, SAIL climbed 4.18 per cent, Jindal Steel edged higher by 2.75 per cent, Tata Steel went up by 2.45 per cent, APL Apollo Tubes advanced 1.48 per cent, and Jindal Stainless (0.15 per cent).

The BSE metal index climbed 1.51 per cent to end at 36,811.73. PTI ABI RR SUM ANZ CS ANZ BAL BAL