India Slaps 12% Safeguard Duty on Steel Imports From China Amid Dumping Fears
Imports from China jumped 80 per cent year-on-year between January and July 2024, hitting 1.61 million tonnes, according to the Ministry of Steel
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In a policy response to growing concerns over cheap steel imports, the Indian government has imposed a 12 per cent provisional safeguard duty on key flat steel products from China, South Korea, and Vietnam. The measure, effective for 200 days, aims to shield the domestic industry from a surge in below-cost dumping triggered by global market shifts and protectionist tariffs in other economies.
The decision, announced via a Ministry of Finance notification on Monday, follows a probe by the Directorate General of Trade Remedies (DGTR), which found that a “sudden and sharp” rise in steel imports posed a serious threat to local manufacturers. “The safeguard duty imposed under this notification shall be effective for a period of two hundred days…and shall be payable in Indian currency,” the official communication stated.
The duty applies to a range of products including hot rolled coils, sheets and plates, cold rolled coils, metallic coated and colour-coated steel. However, imports priced above a specific cost threshold, $675 per metric tonne for hot rolled products and $964 per tonne for colour-coated variants, will be exempt. Several speciality steels such as tinplate, stainless steel, and electrical steel have also been excluded to protect downstream industries.
India’s steel imports have risen sharply, especially from China, where production has shifted from long to flat products due to weakening domestic demand. Imports from China jumped 80 per cent year-on-year between January and July 2024, hitting 1.61 million tonnes, according to the Ministry of Steel.
The Indian Steel Association (ISA) has been vocal about the risks, pointing to a global trend of rising trade barriers. “The evidence indicates that 129 trade remedy measures were imposed by various countries against steel products between 2019 and 2023,” it noted in its submission to the Ministry of Commerce. The association warned that unchecked imports could undercut local production and erode India’s manufacturing base.
However, exporters and smaller manufacturers remain cautious. EEPC India Chairman Pankaj Chadha called for more targeted protections: “There should be a provision for MSME units to procure steel at export parity prices to ensure their global competitiveness.”
In a policy response to growing concerns over cheap steel imports, the Indian government has imposed a 12 per cent provisional safeguard duty on key flat steel products from China, South Korea, and Vietnam. The measure, effective for 200 days, aims to shield the domestic industry from a surge in below-cost dumping triggered by global market shifts and protectionist tariffs in other economies.
The decision, announced via a Ministry of Finance notification on Monday, follows a probe by the Directorate General of Trade Remedies (DGTR), which found that a “sudden and sharp” rise in steel imports posed a serious threat to local manufacturers. “The safeguard duty imposed under this notification shall be effective for a period of two hundred days…and shall be payable in Indian currency,” the official communication stated.
The duty applies to a range of products including hot rolled coils, sheets and plates, cold rolled coils, metallic coated and colour-coated steel. However, imports priced above a specific cost threshold, $675 per metric tonne for hot rolled products and $964 per tonne for colour-coated variants, will be exempt. Several speciality steels such as tinplate, stainless steel, and electrical steel have also been excluded to protect downstream industries.
