India's Steel Safeguard Duty: Price Hikes Loom Amid Import Curbs

• India imposed a three-year safeguard duty (12%, 11.5%, 11%) on select steel products from December 30 to curb cheap imports, especially from China.
• The duty aims to provide relief to domestic steelmakers like JSW Steel, allowing for potential price hikes of at least Rs 1,000 per tonne due to reduced competition and rising input costs.
• Analysts predict the duty could reduce overall steel imports by 20-25% in FY26 and FY27, creating a 14% discount for domestic steel compared to imported.
• Industry leaders, including Naveen Jindal, welcome the move, stating it restores competitive balance and supports the domestic steel value chain against global overcapacity.
• Despite the duty, India remained a net steel importer in Jan-Nov, with exports declining amid sluggish global sales and competition.

Why It Matters: Safeguard duty on steel imports empowers Indian steelmakers to raise prices and counter cheap foreign competition.