Metal stocks trade higher after govt imposes 12% safeguard duty on steel imports

Morgan Stanley: Safeguard Duty a Short-Term Positive, But No Trigger for Price Hikes

The metal pack charged ahead in early trade on April 22 after the government stepped in with a protective measure to shield domestic steelmakers. A 12 percent safeguard duty has been imposed on imports of certain flat products made of non-alloy and alloy steel, aimed at curbing the inflow of cheaper alternatives from abroad—particularly China.

Following the move, the Nifty Metal index continued its upward momentum, advancing for the sixth straight session. By 9:30 am, the index had climbed 1.22% to 8,759, hitting a fresh intraday high of 8,783. All constituents of the index were trading in the green.

Leading the charge were Hindustan Copper and Jindal Stainless, which rose 1.64% and 1.44% respectively. Hindustan Zinc (+1.33%), Tata Steel (+1.21%), and Jindal Steel (+1.00%) also saw strong buying interest. Vedanta and NALCO posted modest gains.

The safeguard duty, effective April 21 for a period of 200 days, was notified by the Ministry of Finance on Monday. It comes at a time when Indian manufacturers have been increasingly vocal about the risks posed by global trade distortions and potential dumping of steel into the domestic market, especially in the wake of tariff uncertainties triggered by US policy shifts.

“This is a timely and much-needed move,” said T. V. Narendran, CEO & MD, Tata Steel, in a quote carried by Mint. “Unchecked imports undermine domestic production, put jobs at risk, and dampen long-term investment. This step will help level the playing field and support the broader goal of building a self-reliant and competitive steel ecosystem in India.”

Market watchers see the duty as a sentiment booster for steel producers battling price volatility and import pressure. With policy support in place, many expect better stability in margins going into the new quarter.