Shares of Tata Steel Ltd, JSW Steel Ltd, SAIL, and Jindal Steel & Power Ltd climbed during Tuesday’s trading session after the government imposed a 12% provisional safeguard duty on certain steel products. This move was aimed at protecting local manufacturers from the recent influx of imports. The duty came into force immediately and will stay effective for 200 days unless revoked sooner.
Following the development, Business Today reported the numbers, where shares of Tata Steel gained 1.04 per cent to Rs 140.63. SAIL added 1.25 per cent to Rs 117.44. JSPL advanced 0.92 per cent to Rs 914.70. JSW Steel edged 0.37 per cent higher to Rs 1,037.80. Against a flattish BSE Sensex, the BSE Metals index was up 268.32 points or 0.92 per cent at 29,516.91.
Union Minister for Steel and Heavy Industries, HD Kumaraswamy, affirmed that his ministry remained committed to working closely with all stakeholders, aiming for the growth of Indian steel sector, ensuring it stays resilient, self-reliant, and globally competitive.
He stated that imposing a 12% safeguard duty on the import of specific non-alloy and alloy steel flat products was a timely and necessary step to protect domestic manufacturers from the negative impacts of surging imports to ensure fair competition in the market.
“This move will provide critical relief to domestic producers, particularly small and medium-scale enterprises, who have been under immense pressure due to rising imports. The safeguard duty will help restore market stability and bolster the confidence of the domestic industry,” the Minister stated.
Kotak Institutional Equities, in a strategy note earlier this month, stated that Indian steel producers are in a more favorable position compared to aluminum producers. The report anticipates that China will likely introduce economic stimulus measures in the H2 2025 to counter weaker exports, to improve both the real estate sector and the steel demand cycle.
In India, the recent price surge indicates growth in strong earnings in the coming quarters. Since aluminum is more dependent on global demand outside China, the current decline in alumina prices has weakened cost support for the sector, it said.
Among steel players, Kotak preferred steel converters or non-integrated steel producers such as JSPL and JSW Steel over integrated players like Tata Steel and SAIL, as they expected iron ore prices to remain under pressure, alongside the protections against Chinese steel exports.
Sources: Business Today