Metals major JSW Steel's management said in a post-earnings call with investors on July 18 that the Union Government should consider extending the current safeguard duties on certain grades of steel, which was imposed for a 200-day period starting late-April 2025. After a period of investigation, the government imposed a 12 percent safeguard duty on imported steel, mainly flat steel products.
The company's joint managing director and CEO, Jayant Acharya, said that low-priced imports are still "finding their way" into Indian markets, keeping up the pressure on prices.
"Given that the tariff uncertainty overall in the world has increased and many countries have started putting barriers to trade, there is more propensity for diversion of trade into India. We are seeing some of that happening. So lower priced imports are coming into India from other countries, which is impacting the sentiment in India. Therefore there is a case for the government to consider the safeguard duty favorably in terms of extension as well as in terms of the overall duty percentage which they have levied," Acharya told investors during the call.
JSW Steel's consolidated net profit for the April-June quarter nearly tripled year-on-year to Rs 2,209 crore, on the back of price support with the imposition of the safeguard duty, as well as improving costs, especially for coking coal and iron ore. The management also noted an improved product mix in sales, such as an increased share of value-added products, and more shipments to segments such as automobiles.
Acharya said that steel prices rose in March, April, and for part of May, but weakened after that, due to seasonal softness, and the continuing imports of cheaper steel.
Acharya noted that despite imported steel volumes reducing, tariff uncertainties have meant that exports have also reduced among Indian steelmakers. He also acknowledged that the reduction in imports has caused some inventory build-up with steel producers.
"While finished steel imports have moderated, exports have fallen as well and India continues to be a net importer. Low priced imports remain a concern accentuated by changes in global trade flows due to rising tariff uncertainties. While steel production in China has fallen in recent months, the elevated Chinese exports continue to be a challenge for the global industry at large," said Acharya.
Acharya said that the company will look to expand its operations in the state on the newly-acquired land, separate from its existing expansion projects at Paradip. However, the management declined to elaborate on the nature, timeline, or the possible capital expansion for the project on the newly-acquired land.
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