Indian steel buyers have questioned whether the market will be able to withstand rising costs after domestic producers raised prices in response to the country's reinstatement of 12 percent import duties on flat rolled products.
The Indian government has allowed duties of up to 12% to be levied on a number of steel products. The supply of flat rolled steel products stops on November 7 after the 200-day application of the protective measure in April. In the December steel survey for emerging markets, MEPs reported that steel prices in India remained stable compared to the previous month, although the cost of a hot-rolled roll decreased by more than 11% compared to the May high.
After the introduction of a new three-year import tariff regime was announced on December 30, many steel producers increased their prices. European Parliament respondents report an increase in prices of 2,000-5,000 rupees per ton (22-56 USD) compared to the previous month. However, many say that buyers are unlikely to agree to such a price jump due to intense competition for sales.
Steel market analyst Kevin Wong said: "Indian steel buyers are currently assessing the new protective duties to determine which imports can remain competitive under the new measures and which can be exempted from them. Imports of goods from countries that have a free trade agreement (FTA) with India are exempt, for example, as those intended for export-oriented Indian manufacturers."
India's new protective duties are designed to reduce the volume of cheap steel imports into the country, particularly from China. Their introduction was postponed to April 2025, while the import duty of 12% was in effect until April 20 of this year, having decreased to 11.5% during the 12-month period until April 20, 2027 and to 11% during the year until April 20, 2028.
Indian protective duties with exceptions
The protective measure does not apply to imports from some developing countries and States that have concluded a free trade agreement with India. It also does not apply to many special steel products, including stainless steel.
Imports whose prices exceed a certain threshold based on CIF will be exempt. These thresholds are set at: US$ 675 per tonne for hot-rolled coils, sheets, and laminates; US$824 per tonne for cold-rolled coils and sheets; US$861 per tonne for metal-coated products; and US$964 per tonne for color-coated products.
Respondents responsible for the development of the European Parliament Markets Steel Review report that steel prices remain
