From JSPL to Tata Steel, steel stocks melt down on export duty levy

Given lower earnings, fair value for steelmakers likely to reduce by 25%

The imposition of 15 per cent export duty on steel has suddenly altered the prospects of the sector to negative and led to a big sell-off in steel stocks. Iron ore and pellet exports have to face duties of 45-50 per cent, which means they become uncompetitive.

The Ukraine war has led to a supply crunch in global markets and pushed up prices, with Europe, in particular, looking for replacements for Ukrainian and Russian exports. 

At the same time, raw material costs and supply-chain difficulties have been sparked off due to record coal prices and tightness in the ore market. The China