- Duty on HR and CR coils, plates, sheets, colour-coated products
- Imports from China plunge over 50% in Apr-Nov, HRC arrivals down 38%
The government has notified the imposition of a definitive safeguard duty on imports of non-alloy and alloy steel flat products, marking a significant trade policy intervention aimed at shielding the domestic steel industry from injury caused by surging imports. The decision follows an extensive investigation by the Directorate General of Trade Remedies (DGTR), which concluded that a recent, sudden, and sharp rise in imports had caused and threatened serious injury to Indian steel producers.
The safeguard duty applies to a broad range of flat steel products, including hot-rolled coils, sheets and plates, hot-rolled plate mill plates, cold-rolled coils and sheets, metallic coated steel, and colour-coated steel products. These items fall under tariff headings 7208, 7209, 7210, 7211, 7212, 7225, and 7226 of the Customs Tariff Act, 1975. The duty will be levied for a period of three years, beginning retrospectively from the date of provisional duty imposition on 21 April 2025.
Safeguard duty tiers
Under the notification, the safeguard duty has been structured on a declining scale:
- 12% ad valorem from 21 April 2025 to 20 April 2026
- 11.5% from 21 April 2026 to 20 April 2027
- 11% from 21 April 2027 to 20 April 2028.
Provided that the said safeguard duty shall not be levied for the period commencing from the date of the lapse of the provisional safeguard duty up to the preceding day of the publication of the notification in the official gazette.
This phased reduction is intended to provide immediate relief to domestic producers while allowing time for gradual market adjustment and enhancing competitiveness.
Importantly, the measure includes a price-based exemption mechanism. No safeguard duty will be applicable if imports are priced at or above specified CIF thresholds, such as $675/tonne (t) for hot-rolled coils and $824/t for cold-rolled coils. This provision ensures that fairly-priced imports are not penalised and help maintain downstream supply stability.
The notification also outlines several country-specific exemptions, particularly for developing countries, in line with India’s obligations under World Trade Organization (WTO) rules. Imports from certain developing nations-excluding China PR, Vietnam, and Nepal for specific product categories—are exempted from the duty.
Additionally, several specialised steel products, including electrical steel, stainless steel, tinplate, and aluminium-coated steel, are excluded from the scope of the safeguard measure.
India’s imports in Apr-Nov’25
India’s steel imports totalled around 6.54 mnt in April-November. Imports fell 13% y-o-y under the influence of the 12% safeguard duty, which had been proposed in March this year and imposed provisionally for 200 days in April.
Commodity-wise imports
India’s finished flat carbon steel imports stood at 4.31 mnt in April-November, down 28% y-o-y. Hot-rolled coil (HRC) arrivals declined by 38% to 1.89 mnt, while electrical steel fell by 15% to 1.21 mnt and galvanised steel by 26% to 0.61 mnt.
Semi-finished steel imports jumped by 437% to 0.91 mnt, while finished long arrivals decreased by 20% to 0.16 mnt. Stainless steel imports were marginally higher at 1.17 mnt compared to 1.16 mnt in the year-ago period.
Country-wise imports
Imports from South Korea remained stable y-o-y at 1.87 mnt. Chinese exports to India plunged 51% y-o-y to 1.14 mnt, while shipments from Japan fell 22% to 1.01 mnt.
Outlook
Overall, the safeguard duty underscores the government’s intent to counter global trade imbalances and excess steel supply. While it is likely to support prices and improve capacity utilisation, the impact on downstream sectors and inflation will be closely monitored during its implementation.
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