NewsCorporate ActionsIndia Proposes 3-Year Safeguard Duty on Steel Imports, Boosting Domestic ProducersIndia Proposes 3-Year Safeguard Duty on Steel Imports, Boosting Domestic Producers
India's Directorate General of Trade Remedies (DGTR) has recommended a new three-year safeguard duty structure on steel imports. The proposed duties are 12.00% in the first year, 11.50% in the second year, and 11.00% in the third year, replacing the current 12.00% duty expiring in September. This move is expected to benefit major domestic steel producers like Tata Steel, JSW Steel, SAIL, and JSPL, as well as related companies such as NMDC and APL Apollo. Despite the potential positive impact, the steel sector has shown mixed recent market performance, with the Nifty Metal index down 2.00% and individual company performances varying.
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India's steel sector is set for a potential boost as the country's Directorate General of Trade Remedies (DGTR) has recommended a new three-year safeguard duty structure on steel imports. This move is expected to benefit major domestic steel producers and related industries.
New Duty Structure
The DGTR has proposed a graduated safeguard duty on steel imports over the next three years:
- 12.00% in the first year
- 11.50% in the second year
- 11.00% in the third year
This new structure is set to replace the current 12.00% safeguard duty, which is due to expire at the end of September.
Impact on Domestic Steel Companies
The recommendation is anticipated to have a positive impact on several key players in India's steel industry:
- Tata Steel
- JSW Steel
- Steel Authority of India Limited (SAIL)
- Jindal Steel and Power Limited (JSPL)
Additionally, companies in related sectors are also expected to benefit indirectly from this move, including:
- National Mineral Development Corporation (NMDC)
- APL Apollo
Recent Market Performance
Despite the potential positive impact of this news, the steel sector has seen mixed performance recently:
| Index/Company | Performance |
|---|---|
| Nifty Metal index | -2.00% |
| Tata Steel and SAIL | -3.00% to -10.00% |
| JSW Steel and NMDC | Relatively stable |
| JSPL | +4.50% |
The proposed safeguard duty aims to protect domestic steel producers from the challenges posed by steel imports. By implementing this graduated duty structure, the government seeks to provide a more stable environment for local steel companies to operate and compete effectively.
As the steel industry awaits the final decision on this recommendation, market observers will be closely watching how these potential changes may reshape the competitive landscape of India's steel sector.
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