Tata Steel, JSW Steel, Jindal Stainless, SAIL: Steel stocks rally in trade on Thursday, January 22; key points to know

The NIFTY METAL index was trading over 1% higher at 11,560.90 levels, with 11 out of 15 components trading in the green and the rest in the red.

The top gainer on the index was APL Apollo Tubes (up 3.7%), followed by SAIL (up 2.94%) and Jindal Steel (up 2.84%).

Other notable names that were trading with gains included Tata Steel, Jindal Stainless, and JSW Steel.

Why steel stocks are rising

The rise in steel stocks could be attributed to factors such as safeguard duty on steel imports, excitement ahead of the Union Budget FY27, and expectation of robust steel demand.

Steel Safeguard Duty

In December 2025, the steel industry said that the government's decision to impose a 12% safeguard duty on the import of flat steel products would help the domestic sector.

Naveen Jindal, President of the Indian Steel Association (ISA), said the safeguard duty is a calibrated policy measure aimed at maintaining stability in the domestic steel market while ensuring continuity of supply for consumers and infrastructure projects.

The Indian government has imposed a final safeguard duty of 12% on flat steel products for three years.

According to a notification from the finance ministry, a 12% duty will be imposed in the first year (April 21, 2025, to April 20, 2026).

The rate will be reduced to 11.5% in the second year (April 21, 2026, to April 20, 2027) and further to 11% in the third year (April 21, 2027, to April 20, 2028).

Jindal, who is also the Chairman of Jindal Steel, said the diversion of surplus steel capacity into India by China, Japan, Korea, and Vietnam has implications for domestic capacity utilisation, investment planning, and employment.

The safeguard duty helps address these pressures by restoring competitive balance and supporting the domestic steel value chain.

Given ongoing global supply imbalances, further trade remedies may be considered as part of a broader policy approach to ensure sustainable growth in the steel sector, Jindal noted.

Budget expectations

Ahead of the Union Budget, domestic steel industry stakeholders have urged the government to introduce measures to boost the use of scrap in green steel production, a key focus area as India works towards reducing carbon dioxide emissions.

Green steel production involves the adoption of low carbon-emitting technologies and greater use of alternative raw materials.

In its budget wishlist, the Indian Steel Association (ISA) has sought measures to promote increased use of scrap for green steel production.

The apex industry body has also urged the government to extend the reverse charge mechanism under GST to the entire metal scrap supply chain to simplify compliance, curb tax leakages, and improve ease of doing business.

Former steel secretary Aruna Sharma said the steel industry has begun aligning with the Green Steel policy notified by the Ministry of Steel, but stronger fiscal intervention is needed to accelerate adoption.

She said the industry is already investing in the transition, which is clearly futuristic, but budgetary support is essential to speed up production and usage of green steel.

Steel industry and India's 5 trillion-dollar economy dream

As a fast-developing country aiming to become a 5 trillion-dollar economy in a few years, India’s economic growth is closely linked to the growth of its steel industry.

It is the ultimate article of trade which can potentially fuel the rise of India as a global manufacturing hub and give the much-needed boost to its ‘Make in India’ campaign, according to a blog by JSW Steel.

The crucial role of steel in India’s growth and its future has been captured in a report prepared by the National Council of Applied Economic Research (NCAER).

Its findings suggest that the steel sector in India has a very high potential of contributing to India’s overall development.

Indeed, it is the one commodity that has multifarious applications spanning diverse sectors of economic activity.

It is used in building houses, manufacturing cars, and making daily-use utensils, as well as for packaging.

Special steels are increasingly being used in packaging, fabrication, and engineering industries such as power generation, petrochemicals, and fertilisers.

India aims for 300 million tonnes of production by 2030

In April 2025, Steel Secretary Sandeep Pondrik had said that the government was taking all measures to ensure that the quality and price of steel were "right", even as he sounded confident of the country achieving the target of having 300 million tonnes of steel production by 2030.