Steel stocks 'safe'

Shares of metal producer, Tata Steel, JSW Steel, SAIL, Jindal Steel, among others rose up to 5% in early deals today. This was thanks to the government, which imposed a safeguard duty of up to 12% on select steel imports, a move seen as a major positive for the domestic industry.

The Ministry of Finance has notified a three-year safeguard duty on certain flat steel products, beginning at 12% in the first year, tapering to 11.5% in the second and 11% in the third. The measure follows a detailed investigation by the Directorate General of Trade Remedies (DGTR), which found a sharp surge in low-priced imports causing material injury to domestic producers.

The duty will apply to imports from key exporting nations including China, Vietnam and Nepal, while excluding certain developing countries and specialty steel grades. The move comes after a temporary 200-day safeguard duty was imposed earlier this year, and aims to curb dumping amid rising global steel surplus.

According to the government, the decision is intended to protect domestic capacity utilisation, pricing power and investment cycles, particularly as Indian steelmakers continue to expand capacity to meet rising domestic demand.

Investors see the move as margin-accretive, especially at a time when input costs remain volatile and global steel prices face pressure from excess supply. Analysts believe the safeguard duty provides near-term earnings visibility and pricing stability for Indian producers, while reinforcing India’s broader strategy of reducing dependence on low-cost imports and strengthening domestic manufacturing competitiveness.