Tata Steel, JSW Steel, SAIL Shares Rise As Government Imposes 12% Safeguard Duty

Shares of Tata Steel Ltd., JSW Steel Ltd., Steel Authority of India Ltd. and Jindal Steel and Power Ltd. rose on Tuesday after the government imposed a 12% temporary safeguard duty on certain steel imports to protect the domestic industry from cheap products being dumped from countries like China and Vietnam.

Shares of Tata Steel rose as much as 2.63% to Rs 142.84, while SAIL was up 2.59% at Rs 118.99. JSW Steel stock rose 2.55% to Rs 1,060.40 and JSPL also rose 1.92% to Rs 923.80.

Following an investigation by the Directorate General of Trade Remedies, the government imposed safeguard duty on certain steel flat product imports for a period of 200 days, effective April 21. The duty will apply to shipments from developed countries, as well as China and Vietnam, according to an official notification.

The move comes after a complaint from the Indian Steel Association, which alleged a "recent, sudden, sharp and significant increase in imports" that had adversely impacted the domestic steel industry. In response, the DGTR launched a probe to assess whether temporary protection was warranted.

The Indian Steel Association represents major domestic steelmakers, including ArcelorMittal Nippon Steel India, JSW Steel, Bhushan Power & Steel, Jindal Steel and Power, and the SAIL. The group argued that the surge in imports had caused material injury to the industry, prompting the government’s interim safeguard action.

"This is a critical step in addressing the surge of unfairly priced imports to India. As we have highlighted before, unchecked imports—especially from countries with significant excess capacity—threaten domestic manufacturing, employment, and future investments. This decision will help restore fair competition, ensure the industry's long-term sustainability, and support India's vision of a self-reliant and globally competitive steel sector," said TV Narendran, chief executive officer and managing director, Tata Steel.