Crisil Rankings Ltd. on Tuesday stated that the imposition of a 12% safeguard responsibility on sure metal merchandise for 200 days will present aid to main steelmakers in India.
Home steelmakers have been grappling with the strain of low-cost imports. That is on account of the redirection of metal exports from surplus nations like China, South Korea, and Japan into India. This surge in imports has negatively impacted home metal costs.
The federal government on Monday imposed the 12% provisional safeguard responsibility on 5 metal product classes, together with sizzling rolled coils, sheets and plates, to guard home gamers from surge in imports.
The transfer will improve the landed price of imported metal, thereby making home metal extra aggressive. “With 12% safeguard responsibility in place, the home producers will now have some respite,” stated Crisil Rankings Director Ankit Hakhu.
“The home metal realisations have been at a 5% premium vis-a-vis imports for many elements of the final two fiscals. This premium was on an uptrend within the final quarter of fiscal 2025, as a consequence of wholesome home demand and in anticipation of the safeguard responsibility, whereas international costs continued to say no,” he added.
Nevertheless, it warned that regardless of post-duty, the landed price of imports may decline additional if international metal costs weaken as a consequence of persistent oversupply and rising commerce protectionism.
This might restrict the power of the Indian corporations to take extra hikes. Whereas the imposition of safeguard responsibility will help the import parity, a whole normalisation of worth dynamics could take longer.
“Whereas the safeguard responsibility and beneficial price of manufacturing will prop up working profitability in fiscal 2026, home utilisation can even should maintain tempo with the capability additions,” Crisil Rankings Affiliate Director Ankush Tyagi stated.
“Wholesome home demand development in fiscal 2026, which is predicted to be increased than international common, will drive quantity development and margin restoration to round Rs 10,500-11,000 per tonne,” he added.
(With PTI inputs)
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