Steel Stocks Soar on Year-End, SAIL Hits All-Time High After Government Tariff Move

Shares of steel companies surged sharply today as the government announced a major policy to curb cheap steel imports, especially from China. The move sent domestic steel stocks soaring, with SAIL reaching an all-time high.

Government Imposes Protective Tariff
In a significant step to protect India’s domestic steel industry, the government has imposed a safeguard duty on certain types of imported steel for three years. The tariff will start at 12% in the first year, reducing to 11.5% in the second year, and 11% in the third year. This measure targets cheap steel imports from countries like China, Vietnam, and Nepal, while certain developing nations are exempted. Stainless steel and some specialized steel products are also excluded from this duty.

Reason Behind the Move
The Directorate General of Trade Remedies conducted an in-depth investigation and recommended the tariff after noticing a sudden and significant surge in steel imports. Officials from the Ministry of Steel emphasized that uncontrolled imports of cheap or low-quality steel could severely impact domestic producers. A similar temporary safeguard duty of 12% had been imposed for 200 days in April, and this new measure is an extension of that effort.

The announcement comes amid rising global trade tensions in the steel market. Following import duties on steel by the U.S., countries like South Korea and Vietnam have also imposed anti-dumping measures on Chinese steel exports this year.

Stock Market Reaction
The government’s announcement triggered strong gains in steel stocks. Shares of Jindal Steel, NMDC Steel, and SAIL rose up to 4.3%, with SAIL climbing nearly 5% to ₹149.05, marking its all-time high. Jindal Steel touched ₹1,064.90, NMDC Steel reached ₹45.12, and SAIL hovered around ₹147. JSW Steel shares rose 3.75% to ₹1,153.35, Jindal Stainless gained 3.2% to ₹862.75, and Tata Steel shares climbed 3% to ₹181.

Analysts say the protective tariff is expected to strengthen domestic steel producers and boost investor confidence, ending the year on a high note for India’s steel sector.