India’s steel products sector is rapidly expanding, with production reaching 149 million tons in 2024 and projected to grow further. Driven by robust domestic demand in automotive, infrastructure, and construction, the market is expected to grow at a CAGR of around 7.8%, supported by government initiatives and rising imports amid capacity expansions.
The Indian government has imposed a 12 percent provisional safeguard duty on five major steel import categories to protect domestic producers from a sharp surge in imports. Effective immediately, the duty will apply for 200 days unless modified or withdrawn earlier, aiming to stabilize the domestic steel industry.
The safeguard duty on products like hot rolled and cold rolled coils, sheets, and coated steel was imposed after a probe by the Directorate General of Trade Remedies. Initiated in December 2024, the investigation followed complaints by the Indian Steel Association, representing major firms.
The DGTR reported a sharp rise in steel imports, increasing from 2.29 million tonnes in 2021–22 to 6.61 million tonnes during the October 2023–September 2024 investigation period. The surge, primarily from China, South Korea, Japan, and Vietnam, poses a serious threat to India’s domestic steel industry.
Additionally, the safeguard duty targets steel imports priced below $675–$964/tonne (CIF), exempting higher-priced shipments. Experts link the import surge to weak demand and surplus capacity in China, Japan, and South Korea. While major steelmakers support the move, MSMEs and exporters fear rising input costs and reduced global competitiveness.
Here are the steel stocks in focus after India imposes a 12% safeguard duty on certain steel products:
Tata Steel Limited is an India-based global steel company with an annual crude steel capacity of approximately 35 million tons per annum. The Company is primarily engaged in the business of manufacturing and distributing steel products across the globe.
With a market capitalization of Rs 1.73 lakh crore, the shares were trading at Rs 138.70 per share, increased around 3 percent as compared to the previous closing price.
JSW Steel Limited is primarily engaged in the business of manufacturing and sale of iron and steel products. It is an integrated manufacturer of a diverse range of steel products with its manufacturing facilities located at Vijayanagar Works in Karnataka, Dolvi Works in Maharashtra, and Salem Works in Tamil Nadu.
With a market capitalization of Rs 2.55 lakh crore, the shares were trading at Rs 1,045.50 per share, increased around 3 percent as compared to the previous closing price.
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Steel Authority of India Limited is engaged primarily in the steel manufacturing business. The Company is engaged in the manufacturing and sale of iron and steel products. The Company’s business segments include five integrated steel plants and three alloy steel plants.
With a market capitalization of Rs 48,198.18 crore, the shares were trading at Rs 116.70 per share, increased around 3 percent as compared to the previous closing price.
Jindal Steel and Power Limited is an India-based steel producer. It operates through three segments: Iron and steel products, Power, and Others. The Iron and steel products segment comprises of manufacturing of Steel products, sponge iron, pellets, and castings.
With a market capitalization of Rs 93,644.09 crore, the shares were trading at Rs 918.00 per share, increased around 2 percent as compared to the previous closing price.
Jindal Stainless Ltd is one of India’s leading makers of stainless steel flat products in Austenitic, Ferritic, Martensitic, and Duplex grades, which are used in industries such as as automobiles, railways, construction, and consumer goods.
With a market capitalization of Rs 47,931.03 crore, the shares were trading at Rs 581.85 per share, increased around 3 percent as compared to the previous closing price.
Written by Abhishek Singh
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