April 22, 2025 — In a move aimed at protecting the domestic steel industry, India has imposed a 12% provisional safeguard duty on flat steel imports, including hot-rolled coil (HRC), cold-rolled coil (CRC), and coated steel, effective immediately for a period of 200 days. The announcement came via an official notification from the Ministry of Finance on Monday, April 21.
The decision follows recommendations made by the Director General of Trade Remedies (DGTR), which concluded that a surge in low-priced imports was harming Indian producers. "The government… hereby imposes a provisional safeguard duty at the rate of 12 percent ad valorem," the notice stated.
However, the duty will not apply if import prices meet or exceed certain thresholds, including:
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$675/mt CIF for HRC, sheets, and plates
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$695/mt CIF for heavy plates
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$824/mt CIF for CRC
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$861/mt CIF for metallic coated flat steel
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$964/mt CIF for color coated steel
The duty is applicable to all countries, including Free Trade Agreement (FTA) partners such as South Korea and Japan, as well as non-FTA nations like China and Vietnam. Market players expect the move to raise domestic flat steel prices and discourage low-priced imports, but not entirely halt them.
“Finally, they did it. Mills have been waiting. It will be difficult to import, but not impossible,” a local industry source told SteelOrbis. Another source noted that while demand remains subdued, the safeguard measure should "give bottom price support in the low-demand market."
Market analysts predict a price increase of INR 1,000–1,500/mt ($12–18/mt) for HRC in the wake of the announcement. Current local HRC trade prices stand at INR 51,500/mt ($606/mt) ex-Mumbai and INR 52,300/mt ($615/mt) ex-Chennai.
Imported HRC from China, previously offered at $490/mt CIF, would now cost around $586/mt CIF after accounting for India’s existing 7.5% import duty plus the new 12% safeguard tariff.
Only cargoes imported under advance licenses will be exempt, while others arriving in the coming months will be subject to the new duty.
India, the world's second-largest crude steel producer, was a net importer of finished steel for the second consecutive year in FY 2024–25, with imports hitting a nine-year high of 9.5 million metric tons, according to provisional government data.
The DGTR launched its investigation into flat steel imports in December 2024 following a complaint from the Indian Steel Association. Major producers backing the complaint included ArcelorMittal Nippon Steel India, JSW Steel, Bhushan Power & Steel, and SAIL.
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