India's DGTR recommends 3-year safeguard duty on steel flat products

India's Directorate General of Trade Remedies (DGTR) has recommended a three-year safeguard duty on imports of non-alloy and alloy steel flat products, according to the final findings issued by the body Aug. 16, seen by Platts, part of S&P Global Energy.

The application for the investigation was filed by the Indian Steel Association (ISA) on behalf of ArcelorMittal Nippon Steel India, AMNS Khopoli, JSW Steel, JSW Steel Coated Products, Bhushan Power & Steel, Jindal Steel and Power, and Steel Authority of India (SAIL), and the probe was formally initiated on Dec. 19, 2024.

The investigation period was from Oct. 1, 2023, to Sept. 30, 2024. Data for financial years 2021-22, 2022-23 and 2023-24 were also assessed for injury analysis.

DGTR in its final findings concluded that there has been "a recent, sudden, sharp and significant increase in imports of [steel flat products] into India at the cumulative level as a result of unforeseen developments and the effect of obligations under the General Agreement on Tariffs and Trade (GATT), causing and threaten to cause serious injury to the domestic industry."

Under the recommendation, safeguard duties will be imposed for three years, tapering annually to allow gradual adjustments: 12% in year 1, 11.5% in year 2 and 11% in year 3.

The safeguard duty will cover a wide range of flat steel products, including hot-rolled coils/sheets/plates, hot-rolled plate mill plates, cold-rolled coils/sheets, metallic coated coils/sheets, and color-coated products. Certain electrical steels (CRGO, CRNO), tinplate, stainless steel, electro-galvanized steel and special coated alloys are excluded from the duty.

The notification also specified that safeguard duties will not apply when imports are priced above certain thresholds on a CIF basis, effectively setting a floor price for duty applicability. These thresholds are $675/mt for hot-rolled coils, sheets and plates; $695/mt for hot-rolled plate mill plates; $824/mt for cold-rolled coils and sheets; $861/mt for metallic-coated coils and sheets; and $964/mt for color-coated coils and sheets.

In line with World Trade Organization provisions, developing nations with an individual share of less than 3% of imports and a collective share of less than 9% are exempt. However, China, Vietnam and Nepal exceed these thresholds for various product categories and will face the safeguard levy. China will be subject to duties across all five product categories, Vietnam will be subject to duties on hot-rolled coils and metallic-coated steel, but exempt from plate mill plates, cold-rolled and color-coated products, and Nepal will be subject to duties on cold-rolled, metallic-coated and color-coated products.

A Mumbai-based distributor said the announcement had minimal impact on the market as a 12% provisional safeguard duty was already in place. "Some players were expecting an increase, but that did not happen. Import activity is currently limited," he noted, adding that Indonesia could emerge as a supplier once its mills obtain BIS (Bureau of Indian Standards) certification, as it is exempt from the safeguard duty being a developing country.

A Mumbai-based trader said mills may try to raise prices, but the market remains subdued for now. Another trader highlighted that imports had already declined and emphasized that "stronger exports and domestic consumption are needed." He referred to Prime Minister Narendra Modi's announcement made on Independence Day on "next-generation GST reforms", suggesting it "could boost consumption and support an improvement in demand." A North India-based trader also said prices were stable, adding that "it will take a few days to see how the market reacts."

The safeguard decision comes amid broader policy activity in India's steel sector this month. On Aug. 13, DGTR recommended a five-year definitive antidumping duty on imports of hot-rolled flat steel from Vietnam. Earlier, on Aug. 8, the Ministry of Steel issued an order exempting 202 BIS licenses from mandatory compliance under the Steel Import Monitoring System (SIMS) for input steel used by integrated steel producers.

Platts assessed the spot price of IS2062, 2.5-10 mm thick HRC, excluding the 18% goods and services tax, unchanged day over day at Rupees 50,000/mt ($572/mt) ex-works Mumbai Aug. 18.