Steel Stocks Surge: India's Temporary Tax Boosts Domestic Producers

Indian steel stocks have seen a significant rise in pre-open trade, with shares increasing between 0.7% to 1%, following the government's proposal to impose a 12% temporary tax on some steel products. This safeguard duty, recommended by the Directorate General of Trade Remedies (DGTR), aims to curb cheaper imports and protect domestic producers. Analysts from firms like JP Morgan and CLSA view this move as positive, expecting it to enhance profitability for companies like Tata Steel and JSW Steel. The duty is set to increase import costs by ₹5,500 per ton, while domestic Hot Rolled Coil (HRC) prices may rise by ₹2,000 per ton, depending on demand and restocking.

 

Source: CNBC TV18