Bruised by rising imports, steelmakers pin New Year hopes on safeguard duty
Subscribe to enjoy similar stories. Mumbai: The commerce ministry's investigation into imports of flat steel products and a likely safeguard duty to curb their shipments have sparked optimism of a turnaround for Indian steelmakers after a tepid year marred by slipping sales price and shrinking margins. A safeguard duty, which is a temporary measure to protect the domestic industry from cheap imports, could finally arrest the slide in steel prices, industry experts said.
The duty could be to the tune of 25% of import price, as per media reports. “India may impose a provisional safeguard duty, likely in the last quarter of FY25. The extent of the duty will be determined by the level of injury sustained by Indian mills during the investigation period," said Dhruv Goel, chief executive officer of market intelligence firm BigMint.
“This measure will curb further declines in steel prices, which have already dropped more than 10% in 2024," he said. A senior executive at one of India’s top steel mills concurred. “Imports at prices below the cost of production have injured the domestic steel industry through 2024, and prices have dipped below pre-covid levels in some cases," this executive said, requesting not to be named.
“Protection from cheap imports is the need of the hour." Prices of benchmark hot-rolled coils (HRC) of steel have declined to an average of ₹48,160 per tonne as of November, lowest since December 2020, as per BigMint data. On Friday, the Directorate General of Trade Remedies (DGTR) launched an investigation to determine whether a safeguard duty on steel imports was necessary amidst a surge in imports. “2024 has been a transformative year for the global steel industry, with China significantly disrupting market
. Read more on livemint.com
