Steel stocks rallied sharply on Wednesday, December 31, after the government formally announced the imposition of anti-dumping duty on imports of non-alloy and alloy steel flat products for a period of three years starting April 21, 2025.
Following the announcement, shares of JSW Steel surged up to 4% in early trade, while SAIL, Tata Steel, and Jindal Steel gained between 2% and 3%, reflecting strong investor optimism across the sector.
Anti-dumping duty structure
According to the official notification, the duty will be levied in a graded manner:
12% on imports between April 21, 2025 and April 20, 2026
11.5% for the period April 21, 2026 to April 20, 2027
11% for April 21, 2027 to April 20, 2028
Products covered under the duty
The levy will apply to a wide range of flat steel 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 profiled or not
Exemptions and country-wise coverage
The gazette notification clarified that imports from certain developing countries are exempt, while shipments from China, Vietnam, and Nepal will continue to attract the duty. Stainless steel has also been excluded from the scope of this levy.
The graded duty structure was first proposed in August and awaited clearance from the Finance Ministry. The earlier 200-day temporary tariff, imposed in April at 12%, expired on November 6, paving the way for the longer-term measure.
Impact on domestic steel prices
While domestic steel prices are currently near parity with imported material, analysts note that the anti-dumping duty will make Indian steel significantly more competitive. The levy is expected to render domestic steel around 12% cheaper than Chinese imports and 8–9% cheaper than supplies from Japan and South Korea, supporting margins and stabilising domestic prices at a time when global steel prices remain under pressure.
Government outlook on demand
Speaking to CNBC-TV18 on November 25, India’s Steel Secretary Sandeep Poundrik had indicated that a decision on safeguard duties was imminent and projected steel demand growth of 8% to 10% in the period ahead.
Stock performance snapshot
Despite Wednesday’s rally:
JSW Steel shares are down 5% so far this month
Tata Steel shares are up 4% in December
On a year-to-date basis in 2025, JSW Steel has gained 23%, while Tata Steel is up 27%, underlining sustained investor interest in the sector.
FAQ: Steel Stocks Rally After Anti-Dumping Duty Announcement
Why did steel stocks rise on December 31?
Steel stocks rallied after the government announced a three-year anti-dumping duty on imports of non-alloy and alloy steel flat products starting April 21, 2025, boosting sentiment for domestic producers.
Which steel stocks gained the most?
JSW Steel rose up to 4% in early trade
SAIL, Tata Steel, and Jindal Steel gained between 2% and 3%
What is the anti-dumping duty announced by the government?
The anti-dumping duty is a protective levy imposed to prevent unfairly priced steel imports from hurting domestic manufacturers.
What is the structure of the anti-dumping duty?
The duty will be imposed in a graded manner:
12% from April 21, 2025 to April 20, 2026
11.5% from April 21, 2026 to April 20, 2027
11% from April 21, 2027 to April 20, 2028
Which steel products are covered under the duty?
The duty applies to:
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
Are any steel products excluded from the duty?
Yes. Stainless steel has been excluded from the scope of the anti-dumping duty.
Which countries will be affected by the duty?
Imports from China, Vietnam, and Nepal will attract the duty. Imports from certain developing countries are exempt, as per the gazette notification.
Was there a temporary duty before this?
Yes. A temporary 200-day tariff of 12% was imposed in April and expired on November 6, after which the government moved to a longer-term measure.
How will the duty impact domestic steel prices?
The duty is expected to:
Make domestic steel 12% cheaper than Chinese imports
Make it 8–9% cheaper than imports from Japan and South Korea
This should help protect margins and stabilise domestic prices.
Why is this move important for Indian steelmakers?
The levy provides pricing power, margin protection, and demand visibility at a time when global steel prices remain weak.
What is the government’s outlook on steel demand?
India’s Steel Secretary Sandeep Poundrik has projected 8% to 10% growth in steel demand, indicating strong domestic consumption.
How have JSW Steel and Tata Steel performed recently?
JSW Steel is down 5% this month
Tata Steel is up 4% in December
How have these stocks performed in 2025 so far?
In 2025:
JSW Steel shares have gained 23%
Tata Steel shares have risen 27%
What should investors watch next?
Investors should track:
Global steel price trends
Import volumes after duty implementation
Domestic demand growth
Company earnings and margin guidance
