Steel industry needs protection: Industry players 

Concerned over the impact of the tariff imposed by the US administration on the domestic steel and aluminium sector, the industry players have demanded protection and a 25% safeguard duty to protect domestic players from a surge in imports.

"The domestic steel industry needs protectionism", said Ranjan Dhar, Director & Vice President - Sales and Marketing at Arcelor Mittal Nippon Steel (AMNS) India.

US President Donald Trump has announced 25% tariffs on India's domestic steel and aluminium industry. There has been a 90-day pause for now. 

SAIL Chairman Amarendu Prakash had also flagged that the imposition of higher tariffs by the US may change the global trade flows.

According to industry players, the US tariff makes India more vulnerable to steel imports as countries, including China, exporting to the US may divert their shipments to India.  

The industry has demanded a safeguard duty of 25% to check dumping by China. However, the Directorate General of Trade Remedies (DGTR), the investigation arm of the commerce ministry, has recommended imposition of a 12% provisional safeguard duty for 200 days on certain steel products with an aim to protect domestic players from a surge in imports.

According to reports, the government is now considering making 20%. The final decision to impose the duty will be taken by the finance ministry.

China is the world's largest steel-producing country and is among the steel-exporting nations to the US.

"If China does not find a market, it will have to divert its products somewhere," he said.

China produced over 1 billion tonnes of steel in FY25, while its domestic consumption is less, and exported 110 million tonnes of steel.

“India also has developed its own steel capacity. So, now, the market does not have an appetite for any imported steel," he said.

AMNS has announced to invest Rs 60,000 crore in the first phase to transition towards green steel.