India extended import duties on flat rolled products for 3 years
India has extended protective duties on certain types of rolled products for up to three years to shield the domestic industry from cheaper imports, which will bring relief to local producers.
The 12% duty will be applied to products imported between April 21, 2025 and April 20, 2026, the Finance Ministry said. it is specified in the notification dated December 30.
The rate will be reduced to 11.5% for goods imported between April 21, 2026 and April 20, 2027, and to 11% for imports from April 21, 2027 to April 20, 2028.
Duties are applied to goods subject to the HS. codes 7208, 7209, 7210, 7211, 7212, 7225 and 7226. Some goods, such as cold-rolled electrical steel, stainless steel and tinplate, are excluded from the scope of duties.
Goods imported at a certain price or above a certain price threshold will not be subject to these duties, the ministry said. For example, the threshold price for a hot-rolled roll (HRC) is set at US$675 per ton cif; imports above this price will not be taxed.
Among developing countries, only China, a major steel exporter, and Vietnam, from where some supplies of Chinese origin are being redirected, will be subject to HRC duties, market participants said.
Imports of finished steel products to India have slowed since a temporary protective duty of 12% was introduced for 200 days on April 21.
The ministry's decision mitigated uncertainty in the market, as participants were unsure whether the protective duty would be extended after it was lifted on November 7.
Domestic prices for granular coal showed a steady downward trend in November, but have increased in the last two weeks due to higher mill prices and stronger demand for restocking.
Argus' weekly HRC2.5-4 mm estimate for the Indian domestic market as of December 26 was 47,250 rupees per ton (US$525 per ton), net of goods and services tax, which is 45,850 rupees higher than in Mumbai.t a month earlier.
Prices continued to rise this week as buyers expect another price increase for the mill in early January. According to industry participants, this increase is likely to continue due to increased import duties.
After receiving the notification from the ministry, the distributor from Northern India increased its HRC offers by 500 rupees per ton from the warehouse.