Shares of JSW Steel surged over 3% in Wednesday’s session, December 31, as the stock rallied in line with broader strength across the steel sector following the government’s decision to impose a safeguard duty on select steel imports.
JSW Steel was trading higher after the Ministry of Finance announced a three-year safeguard duty on non-alloy and alloy steel flat products, a move aimed at protecting domestic manufacturers from a sharp rise in low-priced imports.
What triggered the rally in JSW Steel?
On December 30, the government notified a graduated safeguard duty based on recommendations from the Directorate General of Trade Remedies (DGTR). The duty structure includes a 12% levy in the first year, 11.5% in the second year and 11% in the third year. The measure applies to products such as hot rolled coils, sheets and plates, cold rolled steel and metallic coated steel products.
According to DGTR, India witnessed a sudden and significant surge in steel imports that threatened to cause serious injury to domestic producers. The safeguard duty is expected to curb the inflow of cheaper steel and improve the operating environment for Indian manufacturers.
Why this matters for JSW Steel
JSW Steel, being one of India’s largest integrated steel producers with strong domestic exposure, is likely to benefit from reduced pricing pressure and improved realisations. The safeguard duty is expected to support better margins, improved capacity utilisation and greater pricing stability for domestic steelmakers over the medium term.
The government had earlier imposed a provisional safeguard duty in April 2025 for 200 days. The latest notification extends protection for three years, providing longer-term visibility to the sector.
Sector-wide impact
The announcement has put the spotlight back on steel stocks as investors assess the earnings impact of lower import competition. The move also aligns with the government’s broader objective of ensuring fair trade practices and supporting the domestic steel industry.
As markets digest the policy development, JSW Steel shares remain in focus amid expectations that the safeguard duty could offer sustained support to the sector in the coming years.
