Indian Steel Industry Pushes for Stronger Safeguard Duties to Check Cheap Imports

Indian steelmakers have urged the government to introduce additional measures to curb rising steel imports, particularly from countries such as China, as increasing inbound shipments continue to put pressure on domestic production and prices.

Production Disparity and Stainless Steel Impact

According to data from the World Steel Association (worldsteel), the scale of production disparity is vast. China produced 746.3 million tonnes (MT) of crude steel between January and September 2025, more than six times India’s output of 122.4 MT during the same period. In September alone, China’s crude steel production stood at 73.5 MT, compared to India’s 13.6 MT.

This impact is particularly pronounced in the stainless steel sector. Despite India’s significant installed capacity of 7.5 MT, the sector is currently operating at around 60% capacity, largely due to the impact of cheap imports.

Current Measures and Calls for Action

To protect the domestic industry, the Ministry of Steel has introduced over 100 Quality Control Orders (QCOs) in recent years, restricting non-BIS-compliant steel. However, producers argue that additional safeguards are needed.

In March, the Directorate General of Trade Remedies (DGTR) recommended a 12% provisional safeguard duty for 200 days on specific steel products. Despite this, stainless steel producers have urged the government to take similar action for their sector, as the duty did not address their concerns. A high-level committee is expected to meet industry leaders next week to discuss the issue.

Domestic Prices Fall as Net Imports Continue

Market pressure is evident in pricing. Market data from BigMint shows domestic steel prices fell to a five-year low in October, driven by surging imports. The Reserve Bank of India (RBI) has also flagged the sharp rise in steel imports, particularly from countries offering lower prices.

India imported 0.79 MT of finished steel in September 2025 (up from 0.69 MT in August), marking the sixth consecutive month of net steel imports. During the first half of FY26, India remained a net steel importer by 0.47 MT, despite a 40% increase in export volumes to 4.43 MT.