India Proposes 12% Safeguard Duty on Steel Imports to Curb Surge

India steel

DGTR Moves to Protect Domestic Mills Amid Import Spike and Global Trade Shifts

India Responds to Steel Import Surge with Temporary Protection

India’s Directorate General of Trade Remedies (DGTR) has proposed a 12% provisional safeguard duty on flat steel imports to support the struggling domestic steel industry. The measure, if approved, would remain in effect for 200 days, according to a DGTR notice released on 18 March.

The recommendation comes in response to a sharp rise in imports of hot-rolled coils (HRC), cold-rolled sheets, galvanized, and color-coated steel. The agency cited a “sudden, sharp and significant increase” in volumes that threatens local producers. Indian steel mills had earlier pushed for a higher 25% duty, but the DGTR settled on a lower rate.

Trade Diversion Drives Surge in Imports

The investigation began in December, following a complaint from the Indian Steel Association. The DGTR linked the import surge to trade flow shifts caused by U.S. Section 232 tariffs and similar global protectionist actions. These measures redirected steel exports from major producers like South Korea, China, and Japan toward India.

India turned into a net steel importer in the 2023–24 fiscal year. Between April 2024 and January 2025, finished steel imports rose 21% year-over-year to 8.4 million tonnes, government data show. South Korea led the inflows, followed by China and Japan, who together made up over 75% of total imports.

Selective Exemptions and Domestic Price Reactions

The proposed duty will not apply to HRC imports priced above $675/t cif, offering a price-based exemption. Furthermore, most developing countries will be exempt, except for China and Vietnam, which each account for more than 3% of India’s total steel imports.

The expectation of protectionist measures has already pushed domestic HRC prices higher, reversing the multi-year lows seen earlier in 2024. Market participants had warned of continued price weakness without government intervention.

A final ruling will follow a public hearing, the DGTR said.