Tata Steel shares began 2026 on a healthy footing, gaining another 1.2% in Thursday’s intraday trade (January 1) to touch the day’s high of 182.20 apiece. This marked the fourth straight session of gains, as sentiment toward the sector improved following the Indian government’s decision to extend import duties on steel products.
With today’s uptick in Tata Steel’s share price, the four-day cumulative rally reached 8%, which also pushed the stock to trade above a one-month high.
India has imposed a three-year safeguard duty of 12% on steel imports, according to a finance ministry order issued late on Tuesday, as the government aims to curb cheap shipments, especially from China. These measures were first introduced in April for a period of 200 days, which expired on November 7.
The staggered duty, which will fall to 11.5% in the second year and 11% in the third year, will apply only to products imported at prices below certain thresholds, according to a gazette notification dated December 30.
India is the latest country to respond to a global oversupply that has driven steel prices to multi-year lows, with elevated flows from China. The duty will be levied on key flat steel products, including hot-rolled coils and plates, cold-rolled coils, metallic-coated steel, and color-coated steel.
Steel consumption in India, which has remained robust over the past three fiscal years, is expected to accelerate further in the coming years, supported by the government’s continued focus on infrastructure expansion and rising construction activity.
In its September note, domestic brokerage firm Axis Capital said that domestic finished steel consumption picked up strongly at a 12.6% CAGR during FY22–FY25, reaching 151 million tonnes.
It expects demand to remain robust at a 7.2% CAGR over FY25–FY31E, reaching 230 million tonnes, noting that once-sluggish segments such as aerospace, shipbuilding, and oil and gas are also beginning to add demand as new projects come on stream.
Tata Steel share price ends 2025 with a solid 30% rally
Tata Steel’s share price concluded 2025 with a stellar 30.5% rally, outperforming the Nifty 50’s gain of 10.5%, as Street sentiment was buoyed by the company’s expansion plans, a recovery in steel prices, rising domestic steel demand, along with its expanding downstream portfolio and strong raw material integration.
In its board meeting held on December 10, 2025, Tata Steel outlined its long-term growth strategy for Indian operations, which includes a 4.8 MTPA expansion at Neelachal Ispat Nigam (NINL), signing a memorandum of understanding (MoU) with Lloyd Metals to collaborate on iron ore mining infrastructure and steelmaking, setting up a 6 MTPA greenfield capacity in Maharashtra, and acquiring a 50% equity stake in Thriveni. Pellets for a consideration of 636 crores.
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