India Imposes 12% Safeguard Duty on Steel Imports: What It Means for the Steel Industry

 There is a paradigm shift in the steel sector in India after the government announced a 12% safeguard import duty on selected flat steel products out of alloy and non-alloy categories for 200 days. The April 2025 announcement of the move is aimed at protecting domestic manufacturers from a flood of low-cost steel imports, chiefly from China and Vietnam. It will help restore competition in the market.

Why the Import Duty on Steel Was Imposed

India has finally become a net steel importer in the last two years, with imports spiking to 9.5 Mt, a nine-year high in 2024-25. Local producers, especially small and medium enterprises, have been under enormous pressure following cheaper imported steel that lowered domestic prices to record lows in years. The Indian Steel Association, in an outcry with other industry stakeholders, cried for an emergency response in the face of the “serious injury threat” that came with the sudden import boom. In December 2024, the Directorate General of Trade Remedies (DGTR) opened an inquiry and, in March 2025, advised a 12% rate for a safeguard duty. The government followed this advice promptly, trying to stabilize the internal market and strengthen the trust of the Indian steelmakers.

Key Features of the New Steel Import Duty

  • Scope: The 12% safeguard duty is imposed on selected flat steel products such as hot-rolled coils, sheets and plates, cold-rolled coils and sheets, metallic-coated steel, and color-coated coils and sheets.
  • Duration: The obligation is temporary, and it will last for 200 days starting on 21.04.2025.
  • Price Thresholds: The duty only comes into effect in imports on which the price is below specified limits (i.e., $675/ton CIF for hot-rolled coils). Products that are imported above these prices are exempted; hence, this measure would only affect underpriced imports.
  • Countries Affected: The safeguard duty focuses mainly on China and Vietnam as they are major suppliers of cheap steel that flow into the country.

Impact on the Steel Industry and Trade

The imposition of this import duty on steel is likely to give immediate relief to domestic producers and restore the stability of the market with immediate effect. Indian steel mills have already priced themselves up in preparation for the duty, and further price increases can be expected as the market adjusts. The decision also puts India in tandem with other large steel producers, such as the US and EU, where similar protectionist policies have been recently applied. From the perspective of an exporter, this change in policy is good news for the steel export duty.

Though the government is currently focused on imports, the readiness to interfere with the landscape of steel trade indicates the possibility of changes in export duties or incentives in relation to the global dynamics of the markets. It is more important than ever for Indian exporters and importers to keep themselves posted about the steel industry export duty regulations.

The Road Ahead

Union Minister H. D. Kumaraswamy has said that safeguard duty will strengthen India’s vision of Atmanirbhar Bharat (self-reliant India) and make the steel sector competitive in the world. Although short-term, the measure sets the tone of keeping governments on their toes in the face of global shifts in trade and disruptions in markets. For businesses engaged in the steel trade and those who are working with EximPe, information about the changing import duty on steel and updates in Steel export duty news will be imperative to their strategic planning in 2025 and beyond.

Stay tuned with EximPe for the latest updates on steel industry export duty policies, import duty on steel, and all major steel export duty news impacting your trade decisions.

FAQs

  1. What steel products are covered under the new 12% safeguard duty?

The duty applies to selected flat steel products, including hot-rolled coils, sheets and plates, cold-rolled coils and sheets, metallic-coated steel, and color-coated coils and sheets.

  1. How long will the 12% safeguard duty on steel imports be in effect?

The safeguard duty is temporary and will be in force for 200 days from April 21, 2025.

  1. Are all steel imports subject to the new duty, or are there exemptions?

Only imports priced below specified thresholds (e.g., $675/ton CIF for hot-rolled coils) are subject to the duty; shipments above these prices are exempt 167.

  1. Which countries are mainly affected by this safeguard duty?

The duty primarily targets steel imports from China and Vietnam, which have been major sources of low-cost steel entering India.

  1. What is the expected impact of this duty on the Indian steel industry?

The measure is expected to provide immediate relief to domestic producers, stabilize market prices, and restore fair competition, especially benefiting small and medium enterprises.


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