Government launches probe to determine ‘safeguard duty’ on steel as imports surge: Report

The government has launched an investigation into whether it should impose a safeguard tariff or a temporary tax to curb rising steel imports.

The inquiry follows a petition by the Indian Steel Association, which represents major steel producers such as ArcelorMittal Nippon Steel India Ltd, JSW Steel Ltd and Jindal Steel and Power, demanding an inquiry into “non-alloy and alloy steel flat products ” import: India, according to Reuters.

The Directorate General of Trade Remedies, part of the Commerce Department, announced the investigation in a Dec. 19 notice, citing sufficient evidence of a “recent, sudden, dramatic and significant increase in imports” to warrant an investigation.

Provisional government data for the first eight months of the fiscal year ending March 2025 showed that India’s finished steel imports from China hit a record high, raising concerns among domestic mills about the impact of cheap shipments from China.

Total imports of finished steel hit an eight-year high, with India, the world’s second-largest steel producer, becoming a net importer during the period.

India imported 6.5 million tonnes of finished steel, up 26.6 percent year-on-year, the data showed.

During the same period, China exported 1.96 million tons of steel to India, which is 22.8 percent more than last year.

China mainly exported stainless steel, hot-rolled steel, plates, electrical plates, galvanized plain or corrugated sheets, pipes, bars, rods and other steel products.

Finished steel imports from Japan also rose to a six-year high in April-November, with imports doubling to 1.4 million metric tons, the data showed.

China, Japan and South Korea together account for 79 percent of India’s total finished steel imports during this period.

Hot-rolled steel was the most imported steel product, while bars and rods led the non-flat products category.