Indian Steel Market Sees 18-25% Price Increase Following Extended Safeguard Duty

The price of steel in India has seen a notable climb of 18-25% due to the government's extension of safeguard duties on steel imports. This development comes amidst strong local demand despite challenges in the international market. 

Impact of Extended Safeguard Duty on Indian Steel Prices 

The hike in steel prices across India is directly related to the prolonged enforcement of safeguard duties. The duty is intended to restrict imports and protect domestic manufacturers. 

Currently, the price of hot-rolled coils stands at ₹55,900 per tonne, a rise from ₹47,317 recorded in the December quarter. Similarly, the primary rebar's cost has climbed to ₹59,800 per tonne from ₹47,615. 

Domestic Demand and Global Influences 

Despite international disruptions, particularly the conflicts affecting the Middle East, domestic consumption in India remains robust. While these global events might channel steel imports into India, thus affecting local pricing, the demand within the country offers a counterbalance.  

The UAE has been a significant destination, making up 8% of India's steel exports from April 2025 to January 2026. 

Performance of Key Steel Companies 

Notable steel companies including JSW Steel, Tata Steel, Jindal Steel, and Steel Authority of India have seen their stock prices escalate by 8-18% over the past quarter. This is in sharp contrast to the nearly 9% drop experienced by the benchmark Nifty 50 during the same period. 

Read More: Steel Firms Seek Government Support as Propane Shortage Affects Coated Steel Production! 

India's Steel Production and Consumption Growth 

Between April and February, the production of crude steel in India rose by over 11% from the previous year to reach 153.61 million tonnes, while consumption grew by 7.2% to 147.7 million tonnes.  

According to the World Steel Association, India is expected to sustain approximately 9% growth in steel demand annually through 2025 and 2026. 

Conclusion 

The recent surge in steel prices in India highlights the significant influence of both domestic policies and international developments. While safeguard duties limit imports, robust local demand sustains market growth, keeping the steel sector vibrant amidst varying global conditions. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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