Major Steel stocks rose amid imposition of anti-dumping duty

New Delhi: Shares of Steel stocks like NMDC, NMDC Steel, SAIL, Jindal Steel, Tata Steel, JSW Steel Ltd, etc, have gained over by 4% on Wednesday as the government has announced the implementation of anti-dumping duty on imports of non-alloy and alloy steel flat products for a period of three years starting April 21, 2025.

The duty is applicable to Hot Rolled Coils, sheets and plates, Hot Rolled Plate Mill Plates, Cold Rolled Coils and Sheets, Metallic Coated Steel Coils and Sheets and Colour Coated coils and sheets, whether or not profiled. This duty will stand at 12% when imports are in the duration of April 21 2025-April 20, 2026 period and then to 11% for the April 21, 2027-April 20, 2028 period.

This duty structure was proposed in August which was subject to approval from the Finance Ministry as the 200-day period had ended on November 6.

Further, the official gazette notification has stated that this duty excludes imports from certain developing countries but imports from China, Vietnam and Nepal will get the duty levy. Meanwhile, the Stainless steel is also excluded from the duty. A temporary 200-day tariff of 12% was imposed in the April by the government.

With domestic prices now par with the imported steel, it is safeguard duty is imposed then it makes domestic steel more competitive as it will make domestic steel price 12% cheaper than China and 8 to 9% cheaper than imports from Japan and Korea.