India Proposes 12% Safeguard Tax on Imported Steel
[tintuc]
India’s Directorate General of Trade Remedies has suggested a temporary 12% safeguard tax on imported flat steel to protect the country’s steel industry.
This tax is lower than the 25% that Indian steel mills wanted to stop cheap imports, which have been putting pressure on local companies’ profits.
The Directorate started a safeguard investigation in December after the Indian Steel Association filed a request. Trade restrictions from the U.S. under Section 232 in 2018, along with protective measures from other countries, have shifted trade flows toward India, increasing imports.
For hot-rolled steel coils (HRC), the proposed safeguard tax will not apply if the product is imported at $675 per ton or higher (cif price), the agency said.
Expectations of this tax are one reason why domestic HRC prices have jumped recently. Prices had fallen to their lowest in years in 2024 due to cheaper imports and weak local demand.
India became a net steel importer in the 2023-2024 financial year and has stayed that way in the current financial year, ending in March. From April 2024 to January 2025, finished steel imports rose 21% to 8.4 million tons, with South Korea as the biggest supplier. According to the Ministry’s data, South Korea, China, and Japan made up more than three-quarters of India’s total finished steel imports over the past ten months.
The Directorate General recommends that, among developing countries, only China and Vietnam will face the tax. Other developing nations will be exempt. This is because, among developing countries, only China and Vietnam account for more than 3% of India’s imports, while all other developing countries together make up less than 9%. A hearing will be scheduled before a final decision on the safeguard measure is made.
India’s Directorate General of Trade Remedies has suggested a temporary 12% safeguard tax on imported flat steel to protect the country’s steel industry.
This tax is lower than the 25% that Indian steel mills wanted to stop cheap imports, which have been putting pressure on local companies’ profits.
The Directorate started a safeguard investigation in December after the Indian Steel Association filed a request. Trade restrictions from the U.S. under Section 232 in 2018, along with protective measures from other countries, have shifted trade flows toward India, increasing imports.
For hot-rolled steel coils (HRC), the proposed safeguard tax will not apply if the product is imported at $675 per ton or higher (cif price), the agency said.
Expectations of this tax are one reason why domestic HRC prices have jumped recently. Prices had fallen to their lowest in years in 2024 due to cheaper imports and weak local demand.
India became a net steel importer in the 2023-2024 financial year and has stayed that way in the current financial year, ending in March. From April 2024 to January 2025, finished steel imports rose 21% to 8.4 million tons, with South Korea as the biggest supplier. According to the Ministry’s data, South Korea, China, and Japan made up more than three-quarters of India’s total finished steel imports over the past ten months.
The Directorate General recommends that, among developing countries, only China and Vietnam will face the tax. Other developing nations will be exempt. This is because, among developing countries, only China and Vietnam account for more than 3% of India’s imports, while all other developing countries together make up less than 9%. A hearing will be scheduled before a final decision on the safeguard measure is made.
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