Steel Safeguard Duty: Relief for Indian Producers

New Delhi, Apr 21 (PTI) The government's decision to impose a 12 per cent safeguard duty on the import of certain non-alloy and alloy steel flat products will provide relief to domestic producers, mainly SMEs, which have faced great pressure from surging imports, Union Steel Minister H D Kumaraswamy said on Monday.

India imposed a 12 per cent provisional safeguard duty for 200 days on five steel product categories, including hot rolled coils, sheets and plates, to protect domestic players from surge in imports.

"The move will provide critical relief to domestic producers, especially small and medium-scale enterprises, who have faced immense pressure from rising imports. The safeguard duty will help restore market stability and reinforce the confidence of the domestic industry," he said.

This measure, he said, is a timely and necessary step to protect domestic steel manufacturers from the adverse impact of import surges and to ensure fair competition in the market, according to a statement by the steel ministry.

He reiterated that the steel ministry remains committed to working with all stakeholders to ensure that the domestic steel sector remains resilient, self-reliant, and globally competitive.

Meanwhile, Tata Steel CEO & MD T V Narendran said the safeguard duty on some steel imports is a critical step in addressing the surge of unfairly priced imports to India.

"As we have highlighted before, unchecked imports'? especially from countries with significant excess capacity ?threaten domestic manufacturing, employment, and future investments. This decision will help restore fair competition, ensure the industry's long-term sustainability, and support India's vision of a self-reliant and globally competitive steel sector," Narendran said.

Announcing the safeguard duty on select steel products, a Department of Revenue notification stated: "... the Central Government after considering the said findings of the Director General (Trade Remedies), hereby imposes...a provisional safeguard duty at the rate of twelve per cent ad valorem."

The decision to impose safeguard duty follows a recommendation for the same by the commerce ministry's investigation arm DGTR. Last month, it was suggested to impose the duty.

The government has set the import prices between USD 675 per tonne to USD 964 per tonne for the five steel product categories. Any shipment imported below these import prices would attract the safeguard duty.

The Directorate General of Trade Remedies (DGTR) last year in December, started an investigation into the sudden surge in imports of 'Non-Alloy and Alloy Steel Flat Products'.

The probe was launched following a complaint from the Indian Steel Association on behalf of its members, including ArcelorMittal Nippon Steel India, AMNS Khopoli, JSW Steel, JSW Steel Coated Products, Bhushan Power & Steel, Jindal Steel and Power, and Steel Authority of India Ltd.