JSW Steel, Tata Steel, Jindal Steel and Power: Steel stocks rally up to 2%; here is why

Last seen, JSW Steel was trading 2% higher at ₹935.45 apiece on the NSE. Tata Steel was also up 2% at ₹143.42. Shares of Steel Authority of India (SAIL) were trading 1.5% higher at ₹117.94 apiece on the NSE.

The Directorate General of Trade Remedies (DGTR), under the commerce ministry, has started the investigation into 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.

According to the notification of the DGTR, the Indian Steel Association, on behalf of its members—ArcelorMittal Nippon Steel India, AMNS Khopoli, JSW Steel, JSW Steel Coated Products, Bhushan Power & Steel, Jindal Steel and Power, and the Steel Authority of India—has filed an application under the customs tariff Act, 1975.

They have sought the imposition of safeguard duty on imports of these products into India.

The applicant has alleged that there is a "recent, sudden, sharp, and significant" increase in the volume of imports, which has caused "significant" injury to the domestic industry in India," it said.

It must be noted here that steel stocks were under pressure in the last few sessions on reports of a significant rise in the volume of imports.

Indian Steel Association has also alleged that the imports have taken place to cause serious injury to the industry.

"They have sought imposition of safeguard duties to protect the domestic industry engaged in the production of like articles or directly competitive products from such serious injury and threat thereof being caused by the imports," DGTR said.

For the probe, DGTR will consider the imports that happened from October 2023 to September 2024.

The authority will also examine data pertaining to 2021-24.

Safeguard measures in the form of duties of 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 a sudden and significant increase in imports of a product.