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Roll-back of export duty on steel has no near-term earnings upside: Experts

Analysts perceive the roll-back of export duties on steel as a valuation re-rating event, rather than an earnings upgrade trigger

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Domestic prices are now at a 6-7 per cent premium to import parity prices, whereas export prices are 25 per cent lower than domestic prices

Nikita Vashisht New Delhi
The government's decision to remove export duty on steel products, and raw materials may not have a positive impact on earnings in the near-term, caution analysts, who fear a worsening global situation may limit upside.

"Global situation is now worse than what it was in May, 2022 -- when the duties were imposed. HRC (hot-rolled coil) exports are still not viable for domestic steel producers – thus, exports would likely remain low," said Ashish Kejriwal and Jyoti Singh of Nuvama Institutional Equities.

According to

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First Published: Nov 21 2022 | 11:01 AM IST

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