Hurt by imports, steelmakers eye safeguard duty

The temporary measure, likely in the last quarter of FY25, will protect domestic firms from cheap imports

The commerce ministry's investigation into imports of flat steel products and a likely safeguard duty to curb their shipments have sparked optimism of a turnaround for Indian steelmakers after a tepid year marred by slipping sales price and shrinking margins.

A safeguard duty is a temporary measure to protect the domestic industry from cheap imports, and could arrest the slide in steel prices, industry experts said. The duty could be to the tune of 25% of import price, media reports said.

"India may impose a provisional safeguard duty, likely in the last quarter of FY25. The extent of the duty will be determined by the level of injury sustained by Indian mills during investigation the period," said Dhruv Goel, chief executive officer of market intelligence firm BigMint.