Metal Stocks Surge as Government Imposes 12% Safeguard Duty on Steel Imports

On Tuesday, April 22, shares of major Indian metal companies like Tata Steel, SAIL, JSW Steel, Jindal Steel & Power, and Jindal Stainless rose 1-2% during morning trade. The rally came after the Indian government introduced a 12% safeguard duty on steel imports on April 21, aiming to protect the domestic industry from low-cost foreign steel.

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Government Imposes 12% Safeguard Duty

The Ministry of Finance announced the safeguard duty through a notification issued on Monday. This duty will apply for 200 days starting April 21 and covers certain non-alloy and alloy steel flat products. This move is expected to protect domestic manufacturers from rising competition from cheaper imports, particularly from China.

Steel and Heavy Industries Minister H. D. Kumaraswamy welcomed the decision, calling it necessary to ensure fair competition and shield local companies from potential import surges.

According to a press release by PIB, Minister H.D. Kumaraswamy said, “This move will provide critical relief to domestic producers, especially small and medium-scale enterprises, who have faced immense pressure from rising imports. The safeguard duty will help restore market stability and reinforce the confidence of the domestic industry.”

Nifty Metal Index Rallies for Sixth Session

The Nifty Metal index continued its winning streak, rising for the sixth straight session. It touched an intraday high of 8,783, up 1.5% in the morning. By around 12:08 PM, the index was trading 0.83% higher at 8,725, with all 15 stocks in the green.

Notable gainers included National Aluminium Company, Vedanta, Lloyds Metals and Energy, Hindustan Copper, Adani Enterprises, Hindalco Industries, and NMDC. These stocks rose between 0.5% to 2%, reflecting strong investor sentiment in the sector. Around 12:10 PM, Lloyds Metals and Energy was trading 3.30% higher at ₹1,332.

Tariff Pause Boosted Momentum Earlier

On April 11, the Nifty Metal index strengthened after U.S. President Donald Trump announced a 90-day pause on global tariff hikes. This move helped ease concerns of a worldwide trade war, which had put pressure on metal stocks earlier.

Companies like Tata Steel and Hindalco, which have significant exposure to U.S. exports, were among the top performers on that day following the pause. Before that, fears of high U.S. tariffs and a potential economic slowdown had led to a dip in metal stocks, as investors worried about falling global demand and increased dumping into markets like India.

Conclusion: Domestic Steelmakers Get a Much-Needed Boost

The imposition of the safeguard duty comes at a crucial time for India’s steel sector. With global trade tensions and the risk of cheap imports on the rise, this move is expected to bring short-term relief and level the playing field for domestic producers. Investors have displayed confidence in the government’s step to protect local industry and ensure sustainable growth in the metal sector.