The Indian government has imposed a 12pc provisional duty on certain flat steel imports for 200 days to shield the domestic steel industry.
The duty, applicable from 21 April, was implemented following a recommendation by the Directorate General of Trade Remedies in March. It covers products under HS codes 7208, 7209, 7210, 7211, 7212, 7225 and 7226, the ministry of finance said in a notification.
As recommended by the DGTR, the duty is only applicable if the import price is below a certain threshold, which is different for each product. For hot-rolled coils (HRC), the safeguard duty will not be applicable if the product is imported at or above $675/t cif, while the threshold is set at $824/t cif for cold-rolled coils.
Domestic Indian steelmakers in 2024 sought protection from lower-priced imports from China and other Asian suppliers, which pushed local HRC prices to multi-year lows last year. The DGTR subsequently launched a safeguard investigation in December 2024.
HRC prices rebounded last month, partly because of rumors and speculation around potential safeguard measures, and received a further boost following the duty proposal on 18 March.
The Argus weekly Indian domestic HRC assessment for 2.5-4mm material reached over an eight-month high of 52,100 rupees/t ($612/t) ex-Mumbai, excluding goods and services tax, on 4 April, increasing by 9pc compared to the end of February. Sentiment shifted over the last few weeks because of escalating US-China trade tensions, with the assessment falling to Rs51,000/t on 17 April as restocking interest cooled.
Surging imports pose a threat to the domestic industry and there is a need to implement provisional safeguard measures immediately, the DGTR said in its recommendations.
India remained a net importer of finished steel in the April 2024-March 2025 fiscal year, with inflows increasing by 15pc on the year to 9.5mn t, according to ministry data.
China has been a major supplier, owing to its weak domestic market, while imports from countries which India has a free-trade agreement with — such as South Korea and Japan — have also risen. South Korea was the top supplier to India during April 2024-February 2025, and accounted for 30pc of its total finished steel imports.
Among developing countries, only China and Vietnam will be subject to safeguard duties. "Unchecked imports — especially from countries with significant excess capacity — threaten domestic manufacturing, employment, and future investments," said Indian producer Tata Steel's chief executive T.V. Narendran.
"This decision will help restore fair competition, ensure the industry's long-term sustainability, and support India's vision of a self-reliant and globally competitive steel sector," Narendran added.
The trade market reaction to the safeguard duty implementation was mixed, with some saying mills could take a cautious approach as buyers have been resisting latest price hikes, while others said steelmakers were likely to hike prices immediately. Indian steel mills increased prices by about Rs4,000/t following rumors around safeguards and the duty proposal, and now a further uptrend in prices is expected, an international steel trader said. A local steel distributor said steel mills would definitely raise prices, but in May instead of this month.
