Steel Sector Secures Support with Proposed Import Duty

The commerce ministry's Directorate General of Trade Remedies (DGTR) has proposed a 12% safeguard duty on certain steel imports to protect domestic industries. This recommendation has led to a stock rally, with notable gains in NMDC Steel, Tata Steel, and others. The finance ministry will decide on implementing the duty.

The steel industry moved into the spotlight on Wednesday following a proposal by the commerce ministry's investigative arm, the Directorate General of Trade Remedies (DGTR). The arm has suggested the imposition of a provisional 12% safeguard duty on certain steel imports for 200 days to shield domestic manufacturers from a sudden influx of foreign steel.

This potential imposition sparked a surge in the stock market, with NMDC Steel observing an 8.33% rise, Steel Authority of India climbing 5%, and Tata Steel advancing by nearly 3%. Other notable performers included JSW Steel and Jindal Steel, further boosting investor confidence. The BSE Sensex recorded an increase of 122.37 points, while the NSE Nifty rose by 60.45 points.

The DGTR's investigation, initiated last December, responded to a complaint by the Indian Steel Association. It highlights an alarming hike in imports of 'Non-Alloy and Alloy Steel Flat Products,' which are integral to various industries. The directorate underscores the vital need for immediate action to prevent irreversible damage to the domestic steel sector pending a final decision by the finance ministry.

(With inputs from agencies.)