Steel stocks are in focus in today’s trading session after the Government of India imposed a safeguard duty on the import of non-alloy and alloy steel flat products for three years, aiming to protect domestic manufacturers from a surge in low-priced imports.
What has the government announced?
The Ministry of Finance, through a notification dated December 30, 2025, has imposed a graduated safeguard duty on select steel imports following recommendations from the Directorate General of Trade Remedies (DGTR).
The safeguard duty structure is as follows:
- 12% ad valorem in the first year
- 11.5% ad valorem in the second year
- 11% ad valorem in the third year
The duty applies to imports of non-alloy and alloy steel flat products, including hot rolled coils, sheets and plates, cold rolled coils and sheets, and metallic coated steel products.
Why was the safeguard duty imposed?
According to the DGTR’s findings, India witnessed a sudden, sharp and significant increase in steel imports, which caused and threatened to cause serious injury to domestic steel producers. The safeguard duty is intended to curb the impact of cheaper imports and provide relief to Indian manufacturers.
The government had earlier imposed a provisional safeguard duty for 200 days starting April 21, 2025. Following a detailed investigation, the duty has now been extended for a three-year period.
What does this mean for steel companies?
The safeguard duty is expected to:
- Reduce pressure from low-cost steel imports
- Improve pricing power for domestic steel producers
- Support capacity utilisation and margins
- Provide stability to the domestic steel market
This has led to renewed investor focus on steel stocks, particularly companies with higher domestic exposure to flat steel products.
Which steel stocks could be watched?
While the notification applies broadly to the sector, stocks of integrated steel manufacturers and flat steel producers are likely to remain in focus as markets assess the impact on earnings, demand dynamics and competitive positioning.
Bigger picture
The move aligns with the government’s broader strategy to:
- Protect domestic industry
- Ensure fair trade practices
- Support long-term sustainability of India’s steel sector
With the safeguard duty now officially in place, steel stocks are seeing heightened attention as investors factor in the potential benefits over the next three years.
