Safeguard Duty To Curb Influx Of Steel Import From Select Countries: ISA

New Delhi

The government's decision to impose a 12 per cent provisional safeguard duty on imported flat steel products will help curb "the influx of cheap imports, primarily from China, South Korea, and Japan", the Indian Steel Association (ISA) said on Wednesday.

According to the industry body, these countries alone contributed around 78 per cent to the overall imports in FY25. "This measure aims to curb the influx of cheap steel imports, primarily from China, South Korea, and Japan," the ISA said in a statement. Further, ISA said India became a net importer of finished steel for the second consecutive year, with imports reaching a nine-year high of 9.5 million metric tonnes in 2024-25. ISA said that the DGTR has recommended this duty following an investigation initiated in December 2024. The probe revealed that the sharp increase in imports of non-alloy and alloy steel flat products was causing significant injury to domestic producers, it said.

"We are grateful for the government's decisive move to impose a 12 per cent safeguard duty on flat steel products, much needed to stop imports arriving at predatory prices. This support will help investors to focus with renewed vigour for a capacity build-up towards 300 million tonnes by 2030 for an Aatmanirbhar Bharat and will set the cornerstone for a Viksit Bharat," ISA president Naveen Jindal was quoted as saying in the statement. The government on Monday 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 decision follows a recommendation for the same by the Commerce Ministry's investigation arm DGTR. Last month, the DGTR suggested to impose the duty. "...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," according to a notification of the Department of Revenue.