Tata Steel, JSW Steel, SAIL shares surge up to 4% after DGTR recommends 12% safeguard duty on select steel products

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26 Aug, 2025 12:21

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The shares of steel companies saw a surge on March 19 after the Directorate General of Trade Remedies (DGTR) recommended the imposition of a 12 percent provisional safeguard duty ad valorem for 200 days on select steel products.

The shares of Tata Steel, JSW Steel, SAIL and other companies rallied, pushing the Nifty Metal index up over 1.5 percent as markets opened on March 19.

The recommendation came after the authority observed that there has been a sudden spike in the imports of these products into India. This could have a serious impact on the domestic companies.

DGTR has recommended imposition of a 12 percent duty ad valorem for 200 days on these alloy and non-alloy steel flat products:

*Hot Rolled coils, sheets and plates

*HR Plate Mill Plates

*Cold Rolled coils and sheets

*Metallic Coated Steel coils and sheets, both profiled or not and

*Colour coated coils and sheets, whether profiled or not.

The recommendation will now have to be ratified by the Finance Ministry to take effect.

The shares of SAIL were the top gainer on the Nifty Metal index, jumping nearly 4 percent to open at Rs 114 per share. Heavyweight Tata Steel shares meanwhile were trading nearly 2 percent higher at Rs 157 apiece. The stock has significantly recovered after hitting a 52-week low of Rs 123 in January this year.

JSW Steel shares jumped over 1 percent to trade at Rs 1,030 apiece. Jindal Stainless Steel  shares were trading nearly 2 percent higher at Rs 664 apiece.

Other metal stocks which recorded gains included Welspun Corp (over 2 percent higher), APL Apollo Tubes (nearly 2 percent up), Jindal Steel & Power (up 1 percent), NMDC (over 1 percent higher), Adani Enterprises (nearly 1 percent higher) and more.

Among the small-cap stocks, NMDC Steel shares rallied over 7 percent to trade at around Rs 36 apiece.

Moneycontrol had earlier reported that the government is toying with the idea of a levy between 10-15 percent as smaller players highlight that a higher safeguard duty could increase input costs Big steel makers however remained firm on their proposal of a steeper 25 percent tariff, according to industry sources.

Notably, Indian steel makers have requested the government for safeguard duties for a long time, to protect themselves from the impact of cheap Chinese imports.

Additionally, US President Donald Trump imposed a 25 percent tariff on all steel and aluminium imports coming into the country.  The Indian Steel Association (ISA), which represents leading steelmakers including Tata Steel and JSW Steel, has been lobbying the government for a safeguard duty on steel since December, anticipating that higher tariffs from the US could lead to a surge in imports into India.

Earlier in February, Tata Steel CEO and Managing Director TV Narendran had said that the centre is addressing the concerns of domestic steel manufacturers over cheaper imports of steel products, and 'some development' in this regard was expected very soon.

Speaking to CNBC-TV18, Narendran had said that India needs to manage 'manufacturing risks' that may arise out of any tariff-related action by US President Trump's tariffs on steel imports which are likely to directly impact India's exports, as well as influence indirectly through changes in international prices.

After DGTR made the recommendation, several brokerages came out with bullish calls for the steel makers. Nuvama said every Rs 1,000/ton change in flat products prices affect its FY26 EBITDA projections by 7 to 8 percent for SAIL and JSW Steel, 5 percent for Tata Steel and 4 percent for Jindal Steel and Power.

Morgan Stanley meanwhile noted that if implemented, a safeguard duty in the range between 10 to 15 percent will impact the EBITDA of SAIL by 20 percent to 40 percent, JSW Steel by 15 percent to 28 percent, Tata Steel by 12 percent to 22 percent and Jindal Steel and Power by 6 percent to 15 percent.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.