Autobayng News Team
The central govt’s move to impose a three-year import tariff of 11 per cent to 12 per cent on some steel products has resulted in the price rise of certain items in the domestic market, said industry sources.
According to sources, rates of cold rolled, hot rolled, and most flat products have increased, and it will impact the construction, engineering, and auto sectors.
The Union finance ministry in a notification dated Dec 30, 2025 decided to levy a safeguard duty at 12 per cent in the first year, followed by 11.5 per cent in the second year, and 11 per cent in the third year.
“Around a fortnight ago, the price of steel was around ₹49,500 per tonne. It has now reached ₹57,500, which has affected overall construction cost. However, the overall demand for steel has increased because of various development works,” said Tejas Joshi, president, Credai Gujarat.
Assessing the impact of steel price rise, Ankur Desai, secretary of Credai Ahmedabad, said, “It will impact overall construction cost by around 2 per cent, which means, in terms of carpet area, prices may go up by Rs 140 per sq ft.”
Pathik Patwari, chairman of the ICC Gujarat State Council, said, “The prices of certain products like hot rolled, cold rolled, and flat steel products have gone up by around Rs 2 per kg after the duty was imposed. This will impact various industries, especially construction, engineering, and automobiles. However, it will play a key role in the growth of the steel industry.”
Though China, Vietnam, and Nepal will be subject to the levy, the measure excludes imports from certain developing countries. It will also not apply to speciality steel products such as stainless steel.
Gujarat-based stainless steel manufacturers also expect similar measures. Chandragupt Prakash Mangal, managing director of a leading stainless steel manufacturing company, said, “The safeguard duty on select steel imports is a step towards addressing the surge of low-priced imports. Stainless steel continues to face similar pressures, with imports impacting domestic capacity utilization and pricing stability. Extending safeguard measures to include stainless steel would help restore market balance and support domestic value addition.”
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