Indian steel makers will knock on the doors of the Centre again for relief measures if the proposed safeguard duty at 12 per cent fails to curb steel imports at predatory prices.
The Directorate-General of Trade Remedies (DGTR) recommended the imposition of a safeguard duty on imports of certain flat steel products for three years to protect domestic manufacturers from a sudden jump in inbound shipments.
The measure of DGTR, under the ministry of commerce, followed the complaint by the Indian Steel Association, a body of steel makers. The duty is yet to be operationalised by the finance ministry.
“We would have liked it to be 25 per cent (safeguard duty). But if in their wisdom, they (DGTR) have recommended 12 per cent...that is sufficient,” Naveen Jindal, president of ISA, said at the sidelines of a steel conclave in Delhi.
When asked if the 12 per cent duty is enough compared with countries like the US, which has imposed tariffs as high as 50 per cent, Jindal said DGTR looked at the nature of injury happening to the industry before reaching any conclusions.
“We respect that, and if there is a problem, then we will again take it up. If we cannot do with it, we will again take it up with the government, with the right authorities,” Jindal, who is also the chairman of Jindal Steel Ltd, said.
He argued that global steel prices are currently affected due to exports from various countries to the US having stopped in light of the tariffs.
“All the steel that was being exported to the US has stopped now, right, and they are looking for other markets. That also is the reason for international prices to be depressed,” Jindal observed.
Steel prices have remained soft despite the safeguard duty proposal. Starting from January, every month of the year reported prices compared with the same month of 2024, data accessed from market intelligence firm BigMint showed.
Steel makers said weak prices dent profitability, curbing their ability to plough back internal cash generation to build capacity to cater to the growing domestic demand.
The domestic steel demand is expected to grow in double digits in FY26, Jindal said, despite the flooding in many parts of the country after heavy rains, which hit economic activities. However, it is expected to pick up from next month and close in double digits this year.