Shares of steel giants such as Jindal Steel, JSW Steel, and SAIL surged up to 4% on 31st December after the government announced the implementation of an anti-dumping duty on imports of non-alloy and alloy steel flat products for a period of three years, starting 21st April, 2025.

The safeguard duty will apply to key steel products. These include hot-rolled coils, sheets and plates, hot-rolled plate mill plates, cold-rolled coils and sheets. Additionally, metallic coated steel coils and sheets, and colour-coated coils and sheets, whether profiled or not, are included.

The duty has been structured in phases. Imports will attract a 12% duty from 21st April, 2025, to 20th April, 2026. This will reduce to 11.5% for the period between 21st April, 2026 and 20th April, 2027. It will further ease to 11% from 21st April, 2027, to 20th April, 2028.

The duty framework was first proposed in August and required approval from the Finance Ministry. The earlier 200-day review window ended on 6th November. The government had already imposed a temporary 12% tariff in April this year.

According to the official gazette notification, imports from certain developing countries are excluded from the duty. However, steel imports from China, Vietnam, and Nepal will continue to be subject to the levy. Stainless steel products are also excluded from the safeguard duty.

At present, domestic steel prices are broadly in line with imported steel prices. The safeguard duty is expected to improve competitiveness, making domestic steel nearly 12% cheaper than Chinese imports. It will be about 8%–9% more affordable than supplies from Japan and Korea. This is likely to protect margins and support domestic pricing amid low global steel prices.

Earlier, government officials had indicated that a decision on the safeguard duty was imminent. They also projected steel demand growth of around 8% to 10% in the coming period.

At 10:50 AM, Jindal Steel was trading 3.45% higher at Rs 1,056.50. Meanwhile, JSW Steel was up 4.89% at Rs 1,166 on NSE.

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