Steel Makers Push For 12% Safeguard Duty On Steel Imports For 3 Years

(MENAFN- KNN India) New Delhi, Aug 18 (KNN) Following demands for continued protection against steel imports by domestic producers, India's Directorate General of Trade Remedies (DGTR) has recommended maintaining a safeguard duty on certain steel products, starting at 12 percent in the first year and gradually reducing it to 11 percent over three years.

The recommendation, issued late on Sunday, confirms the provisional 12 percent safeguard duty imposed in April for 200 days. The Central Board of Indirect Taxes and Customs (CBIC) under the Department of Revenue will now take a final decision on its notification.

The measures apply 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.

However, no safeguard duty will be imposed if import prices exceed thresholds specified in the notification-for instance, USD 675 per tonne for hot rolled coils and plates and USD 964 per tonne for colour coated sheets.

Imports from developing countries, except China and Vietnam, are exempt.

The safeguard investigation was initiated in December 2024 following a petition by the Indian Steel Alliance, whose members include ArcelorMittal Nippon Steel, JSW Steel, Bhushan Power and Steel, and the Steel Authority of India (SAIL).

Preliminary findings were issued in March. The DGTR concluded that imports were causing 'serious injury' to the domestic industry through price undercutting, justifying the duties.

The affected products are used extensively across sectors including construction, engineering, automotive, fabrication, packaging, renewable energy, and consumer appliances.

Specialty steels such as tinplate, stainless steel, and grades for electronics have been excluded.

The Global Trade Research Initiative (GTRI), which also made submissions during the probe, argued against the duty, stating that imports were steady rather than 'sudden' and that injury claims were overstated.

It warned that new duties would hurt downstream industries such as automobiles, engineering, and construction, while highlighting that India remains a net steel importer-demand in FY25 was 137.82 million tonnes compared to production of 132.89 million tonnes.

GTRI also pointed to robust margins enjoyed by large steelmakers, citing Tata Steel's 21 percent domestic EBITDA and SAIL's 11.6 percent.

According to GTRI, additional safeguard duties, when combined with existing quality control orders, could risk encouraging cartelisation in the industry.

The DGTR, however, dismissed these concerns, maintaining that evidence showed clear injury from underpriced imports.

(KNN Bureau)

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