SAIL, Tata Steel, JSW Steel: Steel stocks soar up to 5% as DGTR recommends 12% safeguard duty on certain steel products

The NIFTY METAL index was trading 1.22% higher at 9,155.95 levels.

SAIL shares surged up to 5% to ₹114.40 apiece on the NSE, while Tata Steel shares were trading 1.44% higher at ₹156.88 apiece on the NSE.

JSW Steel shares were up nearly 1% at ₹1,026.50, while Jindal Steel was trading 0.39% higher at ₹927.10.

Last year in December, the Directorate General of Trade Remedies (DGTR) started the investigation into the sudden surge in imports of 'Non-Alloy and Alloy Steel Flat Products', used in various industries, including fabrication, pipe making, construction, capital goods, auto, tractors, bicycles, and electrical panels.

The investigations were conducted following a complaint from the Indian Steel Association.

The directorate in its probe has preliminarily found that there is a recent, sudden, sharp, and significant increase in the imports of these products into India, causing and threatening to cause serious injury to the domestic industry/producers.

The directorate in a notification has said in a notification dated March 18 that there exist critical circumstances, where any delay in application for provisional safeguard measures would cause damage that would be difficult to repair.

There is a necessity for the immediate application of provisional safeguard measures.

"The authority recommends imposition of provisional Safeguard Duty at the rate of 12% ad valorem for 200 days pending final determination on imports of the product under consideration," the DGTR has said in a notification.

The finance ministry will take the final decision to impose the duty.

Safeguard measures in the form of duty or quantitative restrictions are trade remedies available to the World Trade Organization member countries. They are imposed to provide a level playing field to domestic players in case of sudden and significant increases in imports of a product.

According to news reports, Nuvama has said that every ₹1000/t change in flat product prices affects its FY26 EBITDA by 7-8% for SAIL and JSW Steel, 5% for Tata Steel, and 4% for JSPL.