Steel Stocks Rally: SAIL, JSPL, Tata Steel Share Price Rise After DGTR Pushes for 3-Year Import Duty

On August 18, shares of major steel companies like Tata Steel, JSW Steel, SAIL, and Jindal Steel & Power (JSPL) jumped up to 3%. The rally came after the Directorate General of Trade Remedies (DGTR) recommended a safeguard duty on steel imports to protect Indian producers from cheap foreign supplies.

What the DGTR Recommended

• A 12% duty in the first year, 11.5% in the second year, and 11% in the third year.
• The decision followed a probe into rising imports of certain flat steel products.
• Earlier in April, a provisional 12% duty was imposed for 200 days after complaints by the Indian Steel Association.

DGTR’s final report confirmed a sharp surge in imports, which was hurting local manufacturers and threatening their profitability.

Rising Imports and Industry Impact

• Chinese exports hit 110.7 million MT in 2024, up 25% from the year before, with excess steel flowing into India.
• Imported hot-rolled coils were landing at $450 per MT, almost $87 cheaper than Indian production costs.
• This price gap caused Indian steelmakers’ profit before tax to fall by 76%, which DGTR termed as “serious injury.”

Read More: Sensex Crosses 81,500 Mark On Aug 18, on GST Optimism and Oil Supply Relief!

Industry Reactions

The Indian Steel Association, representing companies like ArcelorMittal Nippon Steel, JSW, JSPL, and SAIL, pushed for the duty, saying it would help safeguard local jobs and investments.

However, policy think tank GTRI disagreed. It argued that India remains a net steel importer, with demand of 137.8 MT in FY25 compared to domestic production of 132.9 MT. GTRI also warned that safeguard duties could lead to cartel-like pricing when combined with strict quality rules.

Conclusion

The safeguard duty proposal has boosted steel stocks in the short term, as it promises relief for local producers under pressure from cheaper imports. 

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