SAIL, JSPL among steel stocks rising up to 3% as DGTR proposes 3-year safeguard duty on imports

Tata Steel, JSW Steel, SAIL, and JSPL saw their share prices rise by up to 3% in Monday's trading session as investors reacted positively to the imposition of a safeguard duty on steel imports.

The Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce, on August 16 recommended the final imposition of a safeguard duty on imports of certain flat steel products for three years to protect domestic manufacturers from a sudden surge in inbound shipments.

Safeguard duty aims to shield domestic producers

DGTR, the apex authority for administering all trade remedial measures, including anti-dumping, countervailing duties, and safeguard measures, has recommended a 12% duty in the first year, 11.5% in the second, and 11% in the third year.

The recommendation follows the DGTR’s final findings of a probe initiated on a complaint by the Indian Steel Association. Based on preliminary findings, the government had already imposed a provisional 12% safeguard duty for 200 days in April.

In its final report, DGTR concluded that there has been 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 developments… and [these imports] threaten to cause serious injury to the domestic industry/producers.”

The Indian Steel Association, representing members including ArcelorMittal Nippon Steel India, JSW Steel, Jindal Steel and Power, and Steel Authority of India, sought the duty to counter imports of non-alloy and alloy steel flat products. The association alleged a surge in imports caused serious injury to domestic players.

According to data, Chinese exports alone reached 110.7 million MT in 2024, a 25% jump from 2023, with much of the excess supply being redirected to India. Imported hot-rolled coils landed at USD 450 per MT in May 2025, nearly USD 87 per MT lower than Indian costs, even after duties. Domestic profit before tax plunged 76%, which DGTR said amounted to “serious injury” to local producers.

Commenting on this, think tank GTRI noted 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.

GTRI, however, countered DGTR’s findings, arguing that India remains a net steel importer with demand in FY2024–25 estimated at 137.82 MT against domestic production of 132.89 MT. According to GTRI, Indian steelmakers are not under distress, and such safeguard duties could create cartel-like conditions when combined with quality control orders.

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