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What is the story about?
Shares of JSW Steel Ltd., Tata Steel Ltd., Jindal Steel Ltd., SAIL, and other steel-linked stocks will be in focus on Wednesday, December 31, as 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 April 21, 2025.
The duty is applicable to:
The duty will stand at 12% when imports are made during the April 21, 2025 - April 20, 2026 period, fall to 11.5% for April 21, 2026 - April 20, 2027 period and then to 11% for the April 21, 2027 - April 20, 2028 period.
This duty structure was proposed in August and was subject to approval from the Finance Ministry. The 200-day period had ended on November 6.
The official gazette notification stated that this duty excludes imports from certain developing countries, although imports from China, Vietnam and Nepal will remain subject to the levy. Stainless Steel is also excluded from the duty.
A temporary 200-day tariff of 12% was imposed by the government in April this year.
Domestic Prices Are Now at Par With Imported steel but if safeguard duty is imposed then it makes domestic steel more competitive as it will make domestic steel price 12% cheaper than China and 8%-9% cheaper than imports from Japan & Korea. A safeguard duty would protect margins and support domestic pricing at a time when global steel remains cheap.
In an interaction with CNBC-TV18 on November 25, India's Steel Secretary Sandeep Poundrik had mentioned that the government decision on safeguard duty is expected soon and that he expects demand to rise between 8% to 10% going forward.
Shares of JSW Steel are down 5% this month, while those of Tata Steel have risen 4%. Both JSW Steel and Tata Steel shares have risen 23% and 27% so far in 2025 respectively.
(With Inputs From Nigel D'Souza)
The duty is applicable to:
- Hot Rolled Coils, sheets and plates
- Hot Rolled Plate Mill PLates
- Cold Rolled Coils And Sheets
- Metallic Coated Steel Coils and Sheets and
- Colour Coated coils and sheets, whether or not profiled
The duty will stand at 12% when imports are made during the April 21, 2025 - April 20, 2026 period, fall to 11.5% for April 21, 2026 - April 20, 2027 period and then to 11% for the April 21, 2027 - April 20, 2028 period.
This duty structure was proposed in August and was subject to approval from the Finance Ministry. The 200-day period had ended on November 6.
The official gazette notification stated that this duty excludes imports from certain developing countries, although imports from China, Vietnam and Nepal will remain subject to the levy. Stainless Steel is also excluded from the duty.
A temporary 200-day tariff of 12% was imposed by the government in April this year.
Domestic Prices Are Now at Par With Imported steel but if safeguard duty is imposed then it makes domestic steel more competitive as it will make domestic steel price 12% cheaper than China and 8%-9% cheaper than imports from Japan & Korea. A safeguard duty would protect margins and support domestic pricing at a time when global steel remains cheap.
In an interaction with CNBC-TV18 on November 25, India's Steel Secretary Sandeep Poundrik had mentioned that the government decision on safeguard duty is expected soon and that he expects demand to rise between 8% to 10% going forward.
Shares of JSW Steel are down 5% this month, while those of Tata Steel have risen 4%. Both JSW Steel and Tata Steel shares have risen 23% and 27% so far in 2025 respectively.
(With Inputs From Nigel D'Souza)
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