5 Government Policy Changes That Could Affect Steel Prices in 2025

Steel buyers and sellers need to watch more than just demand and supply. In 2025, key government policies could directly impact steel prices and procurement strategies.

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1. “Melt and Pour” Rule for Government Projects

Effective April 2025, all steel used in government projects must be melted and poured in India. It is expected to support domestic production, discourage imports, and strengthen local steel prices.

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2. Mandatory Local Sourcing in Public Procurement

Steel purchases above ₹5 lakh must now prioritize Indian-made steel. Global tenders are allowed only if local supply is inadequate. So, steady demand from public sector buyers could keep prices firm.

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3. 12% Safeguard Duty on Flat Steel Imports

A temporary 12% duty has been introduced for 200 days to counter cheap imports. Spot steel prices have already risen ₹4–5/kg. Domestic mills gain pricing power.

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4. Proposed Increase in Safeguard Duty to 24%

The government is considering raising the safeguard duty to 24% to control Chinese and Korean steel inflow. If approved, it will further limit imports and push prices up.

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5. Ongoing Anti-Dumping Investigations

Indian producers are filing cases against low-cost steel from China, Japan, and Korea. It is likely to result in more import restrictions and price protection for local players.

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Bottom Line for Steel Buyers

These regulatory actions aim to protect domestic mills. But they also raise input costs for downstream users like contractors and fabricators. Watch out for final decisions on duties, and factor rising costs into procurement plans.

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