JSW Steel, Tata Steel, Jindal Steel shares surge up to 4% on safeguard duty announcement

By Admin

31 Dec, 2025

Steel Stocks Rally on Government Decision
Shares of major Indian steel manufacturers witnessed strong buying interest on Wednesday, December 31, after the government announced the implementation of a safeguard (anti-dumping) duty on imports of non-alloy and alloy steel flat products. Stocks such as JSW Steel Ltd., Tata Steel Ltd., Jindal Steel Ltd., SAIL, and other steel-linked companies gained up to 4% in early trade. JSW Steel surged around 4%, while SAIL, Tata Steel, and Jindal Steel were up in the range of 2% to 3%.

Safeguard Duty Structure and Timeline
The safeguard duty will be applicable for a period of three years starting April 21, 2025. As per the official notification, the duty structure is as follows:

• 12% on imports between April 21, 2025 and April 20, 2026
  
  

• 11.5% for the period April 21, 2026 to April 20, 2027
  
  

• 11% from April 21, 2027 to April 20, 2028
  
  

This duty framework was originally proposed in August and required approval from the Finance Ministry. The earlier 200-day temporary tariff period ended on November 6.

Products Covered Under the Duty
The safeguard duty applies to a wide range of steel flat products, including:

• Hot Rolled Coils, Sheets, and Plates
  
  

• Hot Rolled Plate Mill Plates
  
  

• Cold Rolled Coils and Sheets
  
  

• Metallic Coated Steel Coils and Sheets
  
  

• Colour Coated Coils and Sheets, whether or not profiled
  
  

Stainless steel has been explicitly excluded from the scope of this duty.

Country-wise Exemptions and Inclusions
According to the official gazette notification, imports from certain developing countries are exempt from the safeguard duty. However, imports originating from China, Vietnam, and Nepal will continue to attract the levy. This move is aimed at addressing the impact of low-priced imports from key exporting nations.

Impact on Domestic Steel Pricing and Margins
Domestic steel prices are currently at par with imported steel. The imposition of a safeguard duty is expected to make domestic steel more competitive by making it nearly 12% cheaper than Chinese imports and about 8% to 9% cheaper than steel imported from Japan and Korea. Analysts believe this will help protect profit margins and support domestic pricing at a time when global steel prices remain subdued.

Government Outlook on Steel Demand
In an interaction with CNBC-TV18 on November 25, India’s Steel Secretary Sandeep Poundrik stated that the government’s decision on safeguard duty was expected soon. He also projected that domestic steel demand could grow between 8% and 10% in the coming period, providing further support to the sector.

Stock Performance Snapshot
Despite the recent rally, JSW Steel shares are down nearly 5% for the current month, while Tata Steel has gained around 4%. On a year-to-date basis in 2025, JSW Steel and Tata Steel shares have delivered strong returns of approximately 23% and 27% respectively, reflecting sustained investor confidence in the sector.

Conclusion
The announcement of the safeguard duty has provided a significant boost to Indian steel stocks, reinforcing optimism around improved pricing power, margin protection, and demand growth. With the duty set to remain in place for three years, domestic steel producers are expected to benefit from a more balanced and competitive market environment.