India has launched a safeguard investigation on imports of non-alloy and alloy steel flat products, according to a gazette notification dated Dec. 19, seen by Platts.
The Directorate General of Trade Remedies (DGTR) will investigate imports of hot rolled coils, sheets, and plates, hot rolled plate mill plates, cold rolled coils and sheets and metallic coated steel coils and sheets, including galvanneal, coated with zinc or aluminum-zinc or zinc-aluminium-magnesium and color coated coils and sheets, falling under HS codes 7208, 7209, 7210, 7211, 7212, 7225 and 7226, according to the notification.
The application for investigation was filed by the Indian Steel Association (ISA) on behalf of major domestic producers ArcelorMittal Nippon Steel India, AMNS Khopoli, JSW Steel, JSW Steel Coated Products, Bhushan Power & Steel, Jindal Steel and Power Limited, and Steel Authority of India alleging serious injury to the domestic industry due to the sudden significant increase in steel imports.
The application also seeks an imposition of safeguard measures for a period of four years.
The period of investigation will be Oct. 1, 2023 to Sept. 30, 2024, the notification said, adding the DGTR will also examine imports during periods for the financial years 2021-22, 2022-23, and 2023-24.
The safeguard investigation is followed by an antidumping investigation on imports of hot-rolled flat products from Vietnam earlier in August.
The Indian Steel Minister H D Kumaraswamy had also said in September that he would help to increase the duty on Chinese steel imports from the current 7.5% to 10%-12% to protect the domestic steel industry.
India was a net steel importer in the financial year 2023-24 and for the first eight months of the financial year 2024-25. India’s total finished steel imports stood at 6.51 million mt during April-November 2024-25. Major importers to India during the year were China, South Korea, Japan, and Vietnam.
Excess steelmaking capacity in China, Japan, and South Korea and higher steel exports by China to the global markets are said to be the main reasons for an increase in imports, according to the notification.
“We finally have official progress on the safeguard talks that have been ongoing for many months,” a Mumbai-based distributor said, adding this can keep domestic steel prices from falling further and can support a slight increase too.
However, some market participants remained skeptical of any improvements in the market following the announcement.
“The investigation and subsequent processes will take months to complete, and in the meantime, I don’t think it will have a significant impact on the market. The major issue is the lack of demand, and domestic mills believe that curbing imports will
stimulate demand,” a Mumbai-based trader said.
Meanwhile, market participants have also noted that the expiry of Bureau of Standards certifications for foreign mills exporting to India has already reduced new import volumes since November.
The products that are excluded from the safeguard investigation are cold rolled grain oriented electrical steel, cold rolled non-oriented electrical steel coils and sheets, coated - electro-galvanized steel, tinplate, and stainless steel, due to the limited production capacity of these products in India.
---S&P Global Commodity Insights
