India’s steel sector gains as Tata Steel, JSW Steel, SAIL, and JSPL shares rise following DGTR’s recommendation of a three-year safeguard duty to shield domestic producers from import surges.
Shares of India’s leading steelmakers, including Tata Steel, JSW Steel, SAIL, and JSPL, gained up to 3% on Monday, responding positively to the Directorate General of Trade Remedies (DGTR) recommendation to impose a safeguard duty on steel imports.
The DGTR, operating under India’s Ministry of Commerce, recommended a safeguard duty on certain flat steel products for three years, starting at 12% in the first year, tapering to 11.5% in the second and 11% in the third year. This measure aims to protect domestic manufacturers from the impact of sudden import surges.
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The move follows DGTR’s final probe, which concluded that increased imports of non-alloy and alloy steel flat products had caused serious injury to India’s domestic steel industry. The Indian Steel Association filed the complaint prompting this investigation, highlighting the sharp rise in imports, particularly from China, which reached 110.7 million MT in 2024—a 25% increase from the previous year.
Domestic production costs for steel, including hot-rolled coils, have remained significantly higher than imported material even after duties, affecting profit margins for local producers. Tata Steel, JSW Steel, SAIL, and JSPL are expected to benefit from the safeguard duties, which will bolster domestic competitiveness and revenue outlook.
Analysts note that while the duties support local manufacturers, they also raise potential concerns for downstream industries reliant on imported steel. However, from a stock market perspective, the recommendation provided immediate investor optimism, reflected in the up to 3% intraday gains across major steel stocks.
India’s steel sector continues to navigate global supply dynamics, tariff policies, and domestic production costs, with safeguard measures acting as a critical lever to stabilize the industry.
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