Indian steel imports can be reduced by 50 percent in fiscal 2025-26 and see profitability of domestic steel companies improve if the government accepts recommendations of a 12 percent safeguard duty for 200 days, ICRA said in a statement on Friday, March 21.
The Directorate General for Trade Remedies (DGTR) after conducting investigations has recommended a 12 percent safeguard duty on imports of alloy and non-alloy flat steel products for 200 days.
A final decision on this will be taken by the ministry of finance.
“The development is credit positive and expected to lead to a 50 percent reduction in India's steel imports in 2025-26,” Girish Kadam, Senior Vice President and Group Head - Corporate Sector Ratings at ICRA Limited, said.
With imports slated to materially decline, and domestic demand poised to grow at a healthy rate of 7-8 percent in 2025-26 and ICRA expects the industry's capacity utilisation inch up to a more comfortable level of 83 percent during the year from a low of 78 percent in 2024-25, he said.
Sehul Bhatt, director of research, Crisil Intelligence, said the imposition of provisional safeguard duty on some non-alloy and alloy steel flat products will provide pricing support to local manufacturers in the first half of fiscal 2025-26.
