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

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