The Centre’s decision to impose a three-year safeguard duty of 11–12% on select steel imports has triggered a sharp rise in domestic steel prices, raising concerns across the construction, engineering and automobile sectors. Following the Union finance ministry’s notification, prices of key products such as hot rolled, cold rolled and flat steel have moved up in the domestic market.
Steel prices have climbed from around Rs 49,500 per tonne to nearly Rs 57,500 per tonne within a fortnight, significantly increasing construction costs. Industry representatives said the rise has impacted overall project economics, even as steel demand remains firm due to ongoing infrastructure and development activity. Estimates suggest construction costs could rise by about 2%, translating into an increase of nearly Rs 140 per sq ft in carpet area prices.
The duty is expected to aid domestic producers by curbing low-priced imports while excluding speciality steel and select developing countries globally.
