India begins safeguard probe for steel imports

India has initiated a probe into an alleged increase in imports of certain steel flat products into the country following a complaint from the Indian Steel Association.

In a notification, the Directorate General of Trade Remedies (DGTR) said that it has started the investigation into imports of Non-Alloy and Alloy Steel Flat Products used in various industries, including fabrication, pipe making, construction, capital goods, auto, tractors, bicycles, and electrical panels.

The DGTR said that the Indian Steel Association, on behalf of its members - ArcelorMittal Nippon Steel India, AMNS Khopoli, JSW Steel, JSW Steel Coated Products, Bhushan Power & Steel, Jindal Steel and Power, Steel Authority of India - has filed an application seeking imposition of safeguard duty on imports of these products into India.


The product under consideration of the probe includes hot rolled (HR) coils, sheets and plates; HR plate mill plates; cold rolled (CR) coils and sheets; metallic coated steel coils and sheets; and colour coated coils and sheets.

Imports of core steel more than doubled to $18.6 billion in FY24, driven by demand for items not widely produced in India, such as flat-rolled and specialty steels used in advanced sectors like defense and aerospace. Earlier this month, the government discussed imposing a 20%
safeguard duty on steel to protect against cheap imports, steel overcapacity in China and its impact on India if the US restricts or imposes tariffs on the alloy, and the issue of stuck consignments at ports.

For the purpose of the probe, it will consider the imports happened during October 2023 to September 2024.

The authority will also examine data pertaining to 2021-24.

As per the notification, cold rolled grain oriented electrical steel, cold rolled non-oriented electrical steel coils and sheets,
coated-electro galvanized steel, tinplate
and stainless steel are excluded from the investigation.

The applicant has alleged that there is a “recent, sudden, sharp and significant” increase in the volume of imports, which has caused “significant” injury to the domestic industry in India, according to the notification.

"They have sought imposition of safeguard duties to protect the domestic industry engaged in the production of like articles or directly competitive products from such serious injury and threat thereof being caused by the imports,” DGTR said.

The applicant has requested for the imposition of provisional measures citing the existence of critical circumstances. It has asked to impose the duty for four years.

Safeguard measures are imposed to provide a level-playing field to domestic players in case of sudden and significant increase in imports of a product.

While DGTR, under the commerce and industry ministry, recommends the duties, the final call on imposing the duty can be taken by the finance ministry.