Source: World Steel Association
Tata Steel, JSW Steel, Steel Authority of India (SAIL), Jindal Stainless (JSL) and Jindal Steel and Power (JSPL) stocks of major Indian steel companies on April 22, 2025, increase 1%-3% during intraday trading on Tuesday. It came after the government yesterday imposed a provisional safeguard duty of 12 per cent on imports of certain steel products to protect domestic producers to safeguard domestic manufacturers from a surge in imports.
Govt Intervention to Protect Domestic Industry
The ministry on Monday imposed a 12% safeguard duty for a period of 200 days, effective from 21 April 2025, based on the import of specific flat steel for prudential advance. The duty is applicable on hot-rolled plate mill plates, cold-rolled coils and sheets, metallic-coated aluminium magnesium and colour-coated coils and sheets. Imports from developing nations are also exempt, with the exception of goods from China and Vietnam. This safeguard duty acts as a temporary tariff barrier designed to protect domestic producers from serious injury caused by a sudden surge in imports. The move is seen as a comprehensive measure, covering nearly all flat steel imports into the country.
Market Reaction and Sector Performance
At 9:22 AM, the BSE Metal as well as the Nifty Metal indices — the top gainers among the sectoral indices — were up 1 per cent each. The benchmark BSE Sensex and Nifty 50, on the other hand, were 0.05% lower. Despite today’s gains, the metal index has declined 7% over the past six months, compared to a fall of less than 1% in the broader indices. The rally in metal shares is said to be driven by recovering investor confidence, aided by perceptions of showing signs of improved profitability for local players.
Steel Import Surge and Price Pressures
India’s steel imports during FY25 touched a nine-year high of 9.5 million tonnes, with almost 70% of the imports coming from China, South Korea and Japan. This surge of low-cost steel resulted in a crash in domestic prices, which touched a yearly low of ₹47,000 per tonne.The imposition of a safeguard duty is a positive for the Indian steelmakers because the move is expected to reduce imports and therefore create price stability, ICICI Securities said in a note.The price drop had previously impacted margins and disrupted market equilibrium.
Outlook and Industry Response
Following the Directorate General of Trade Remedies’ (DGTR) recommendation in March 2025, ‘’The authority recommends imposition of provisional Safeguard Duty at the rate of 12% ad valorem for 200 days pending final determination on imports of the product under consideration,” the DGTR has said in a notification. Domestic steel prices have rebounded by ₹5,000 per tonne, now trading around ₹52,000. The safeguard duty is expected to reinforce this trend and create a more stable pricing environment.
Analysts expect better pricing, lower raw material costs, and reduced import pressure to drive margin expansion from Q1 FY26. Brokerage houses such as ICICI Securities are maintaining a positive stance on the sector, specifically on JSW Steel and JSPL, noting these firms’ active capacity expansions as well as their strength in the local demand market.
