Shares of most domestic metal companies rose up to 5% on February 13 amid steel minister HD Kumaraswamy's remarks on safeguard duty on cheap steel imports, particularly from China.
India could impose a temporary levy on steel from China in as soon as six months because of the serious challenge to domestic producers from cheap imports, Reuters quoted the steel minister as saying in an interview.
"Rising Chinese steel imports, often aided by unfair trade practices, pose a serious challenge to Indian manufacturers," Kumaraswamy told Reuters in an interview late on Tuesday. "The government is resolute in its commitment to protecting the Indian steel industry," Kumaraswamy added.
On February 13, Nifty Metal index was trading nearly 2% higher with SAIL's shares leading the rally by rising 5% higher at Rs 111.3 apiece.
At 1:25 pm, Tata Steel's shares were trading 3.6% higher at Rs 137.03 apiece while those of Jindal Steel were trading 2.6% higher at Fs 850 apiece. Shares of JSW Steel and NMDC were trading 2% and 1.8% higher, respectively. Shares of Hindalco, NALCO, Hindustan Copper were trading over 1% higher.
"Based on ongoing investigations, safeguard duties in the range of 15-25% are being considered to prevent unfair competition and ensure a level playing field," the minister said.
India became a net importer of finished steel in the fiscal year ending March 2024, and shipments from China reached a record high between April and December.
As a result, despite robust local demand as a result of rapid economic growth and rising infrastructure spending in the world's fastest-growing major economy, domestic steel prices have slumped.
India is also looking to diversify sources of steel-making raw materials such as coking coal, Kumaraswamy said, looking towards Canada, Russia, Mongolia, Mozambique, and the United States.
Australia was the main supplier of coking coal to India in the last decade, accounting for about 80% of all such shipments. Its share dropped to 62% in 2024, as supplies from the U.S. as well as Russia and Mozambique helped India to diversify.
With inputs from Reuters
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