The Directorate General of Trade Remedies (DGTR) has released its final findings on the safeguard investigation into flat rolled steel imports in India, recommending the imposition of staggered safeguard duties of 11–12% over the next three years.
This move comes as the domestic steel sector faces rising pressure from low-cost imports from China, Japan, South Korea, and Vietnam, which were found to be causing serious injury to Indian producers.
Background of the Safeguard Investigation
- The investigation, initiated in 2024, covered hot-rolled flat products of alloy and non-alloy steel (excluding stainless steel) with thickness up to 25 mm and width up to 2,100 mm.
- The period of investigation spanned Oct 2023 – Sep 2024, with injury analysis covering the last three financial years.
- The petition was filed by the Indian Steel Association on behalf of key players such as JSW Steel, ArcelorMittal Nippon Steel India, Tata Steel, SAIL, Jindal Steel & Power, and Bhushan Power & Steel.
Key Findings of DGTR
- Imports surged significantly, leading to price undercutting and price suppression in the domestic market.
- Capacity utilization at Indian mills dropped, while profits, ROI, and cash flow deteriorated.
- Major exporters to India included China, Japan, South Korea, and Vietnam.
- Requests from importers to exclude certain variants like pickled & oiled coils were rejected to prevent circumvention.
Recommended Safeguard Duty Structure
The DGTR proposed a 3-year staggered safeguard duty in line with WTO guidelines:
| Year | Safeguard Duty (Flat Steel Imports) |
|---|---|
| 1st Year | 12% |
| 2nd Year | 11.5% |
| 3rd Year | 11% |
- Duties will apply across all exporting nations.
- Import price thresholds have been set (on CIF basis), above which the safeguard duty will not be levied.
- The safeguard duty may coexist with anti-dumping measures, with adjustments to prevent double protection.
Implications for the Indian Steel Industry
- Relief for Domestic Steelmakers: Companies like JSW, Tata Steel, and SAIL etc will likely benefit from improved pricing power, higher utilization, and better margins.
- Pressure on Importers & Buyers: Automotive, engineering, oil & gas, and construction sectors relying on specialized steel imports could face higher landed costs.
- Market Stability: By reducing the impact of under-priced imports, safeguard duties may help stabilize steel prices in India.
Recent Import Trends (H1CY’25)
- India’s steel imports fell 14% YoY to 4.4 MT.
- Flat steel imports (carbon steel) dropped 24% YoY, led by a 37% fall in HRC imports.
- Country-wise, China and Japan shipments fell sharply by 46% and 41%, while South Korea saw a moderate 8% dip.
Outlook: What Happens Next?
The final decision lies with the Ministry of Finance, which will review and approve DGTR’s recommendation. If implemented:
- Indian mills may secure greater pricing leverage.
- Buyers will need to reassess procurement strategies due to higher costs.
- The safeguard duty signals India’s proactive trade defence, balancing the protection of its steel industry while ensuring supply for growing infrastructure and manufacturing needs.
📖 Reference: BigMint News Report
Key Takeaway for Buyers
The proposed safeguard duty on flat steel imports is set to reshape procurement strategies in India. For domestic producers, it offers much-needed protection; for buyers, it emphasizes the importance of partnering with reliable steel suppliers in India who can ensure consistent quality and fair pricing.
At Banke Tradecom Service Pvt Ltd, we are proud to be a trusted steel supplier in Raipur CG, offering premium structural products like MS plates, angles, beams, steel pipes etc products. We supply steel from leading brands including Tata, JSW, SAIL, Jindal and many more brands, delivering across India with consistency and commitment.
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