SAIL, other steel stocks zoom up to 7% after DGTR recommends 12% safeguard duty on some products

The shares of steel companies, including NMDC Steel and SAIL, surged up to 7% in early trade on the BSE on Wednesday, March 19, after the Directorate General of Trade Remedies (DGTR) recommended a 12% safeguard duty on the import of certain steel products.

NMDC Steel saw the highest jump, rising 7% to an intraday high of Rs 35.97, followed by SAIL, which gained 5% to Rs 114.40. Other steel stocks, including JSW Steel, Tata Steel, Jindal Steel & Power, and APL Apollo, rallied 2-3%.

The recommendation for the said tax is temporary- for 200 days, in a bid to curb imports.


"Authority considers that a provisional safeguard duty of 12% will be appropriate to eliminate the serious injury and threat thereof to the domestic industry," the DGTR, which falls under the federal trade ministry, said in the notice.

The DGTR has invited comments on its findings within 30 days, after which an oral hearing will be conducted before reaching a final decision, according to the notice.

In December last year, the government initiated an investigation to assess the need for a safeguard duty or temporary tax to limit steel imports.

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India, the world's second-largest crude steel producer, recorded its highest-ever imports of finished steel during April-January, making it a net importer, according to an earlier report by Reuters.

India's finished steel imports from China, South Korea, and Japan reached an all-time high during the first 10 months of the financial year.

The surge in low-cost Chinese steel imports has compelled India's smaller mills to scale back operations and consider job cuts, as the country joins a growing number of nations exploring measures to curb imports.

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