Steel makers correct on profit booking

Four four steel majors fell by 0.19% to 3.09% at 11:18 IST on BSE after the government issued notification imposing a provisional safeguard duty effective from 14 September 2015.

Tata Steel (down 3.09%), JSW Steel (down 2.71%), Jindal Steel & Power (down 1.17%) and Steel Authority of India (Sail) (down 0.19%), edged lower.

Shares of Tata Steel, JSW Steel, Jindal Steel & Power and Sail declined on profit booking after rising by 1.96% to 3.72% yesterday, 14 September 2015, on reports the government will soon notify a 20% import tax on some hot-rolled steel products.

The S&P BSE Sensex was down 78.97 points, or 0.31% at 25,777.73.

The government after trading hours yesterday, 14 September 2015 issued notification imposing a provisional safeguard duty effective from 14 September 2015, on hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more at the rate of 20% ad-valorem for a period of 200 days.

The safeguard duty is a global safeguard measure to protect the domestic industry and once imposed the levy is applicable on import of the product from all countries.

According to media reports, the steel makers had been pushing for a safeguard duty instead of an increase in the existing import tax because a safeguard duty would also apply to companies in Japan and South Korea. India has free trade agreements with these countries and gives them import duty concessions, reports suggested.

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