India Unlikely to Raise Steel Safeguard Duty Despite Import Surge

New Delhi, Oct 7 (KNN) India is unlikely to raise the 11.5 Percent safeguard duty on certain steel imports in the near term despite a 29.5 Percent increase in finished steel imports to 3.5 million tonnes during April-August, according to a government source cited by Reuters.

India was a net importer of finished steel during the period, with China accounting for 31.8 Percent of total imports, making it the largest supplier.

The Steel Ministry is unlikely to introduce additional measures to curb imports despite a request from domestic steelmakers, the source said. A steel analyst said a steel mill had petitioned for the safeguard duty to be raised above 20 Percent from the current 11.5 Percent.

India imposed a three-year safeguard duty on certain steel grades in December 2025 and launched an anti-dumping probe in June into hot-rolled steel imports from China, Japan and Russia.

The government source said no increase in the safeguard duty was planned at present as steel prices were already high. The source spoke on condition of anonymity because the import policy is confidential. The Steel Ministry did not respond to Reuters' request for comment.

Domestic steel prices have risen in recent weeks amid higher coking coal prices and stronger demand following the monsoon. Industry executives cited rising demand from the infrastructure and automobile sectors.

India's automobile sales increased 31.82 Percent year-on-year in September, according to an auto dealers' body. Fitch Ratings said higher imports remained a key risk to Indian steel producers' margins if competitive pressure increases.

(KNN Bureau)