Steel makers spurt on reports Govt may slap 20% import duty

Five steel makers rose by 1.51% to 3.40% at 15:00 IST on BSE on reports the government will soon notify a 20% import tax on some hot-rolled steel products.

Jindal Steel & Power (up 3.40%), Tata Steel (up 3.39%), JSW Steel (up 3.02%), Steel Authority of India (Sail) (up 2.54%) and Bhushan Steel (up 1.51%), edged higher.

The S&P BSE Sensex was up 176.32 points, or 0.69% at 25,786.53.

According to reports, the government will soon notify a 20% import tax on some hot-rolled steel products after a government body found evidence that rising imports from China, Japan, South Korea and Russia pose a threat to local companies.

The Directorate General of Safeguards last week recommended the duty for 200 days as it further investigates the issue, following complaints by Sail, JSW Steel and Essar Steel, reports added.

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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