Steel safeguard duty: DGTR backs 3-year levy on flat steel imports, industry groups divided

The commerce ministry’s investigation arm has recommended a three-year safeguard duty on imports of certain flat steel products, citing a sudden surge in shipments that threatened serious injury to domestic producers, PTI reported.In its final findings, the Directorate General of Trade Remedies (DGTR) said it observed “a recent, sudden, sharp and significant increase in imports of the product under consideration” and proposed a phased duty — 12 per cent in the first year, 11.5 per cent in the second, and 11 per cent in the third. The move follows a provisional 12 per cent safeguard duty imposed in April for 200 days.The recommendation came after a complaint by the Indian Steel Association, whose members include ArcelorMittal Nippon Steel India, JSW Steel, Jindal Steel and Power and Steel Authority of India. The association argued that the surge in non-alloy and alloy flat steel imports was causing and threatening to cause serious injury to Indian manufacturers.DGTR said it had considered the “current serious injury” to domestic producers along with the “imminent threat of injury” from continued imports before recommending the final safeguard duty, according to PTI.However, trade policy think tank GTRI criticised the move, noting that DGTR had rejected objections from more than 250 stakeholders, including major automakers and electronics firms. “Imposition of final safeguard duty would raise input costs, hurt export competitiveness, and squeeze downstream users,” GTRI founder Ajay Srivastava said.The think tank said the probe, launched in December 2024, covered hot-rolled, cold-rolled, metallic and colour-coated steel. It noted that Chinese exports of these products rose 25 per cent in 2024 to 110.7 million tonnes, much of which was redirected to India.GTRI argued that the increase in imports was predictable rather than sudden, that domestic industry injury was overstated, and that duties would damage key user industries including autos, engineering and construction.