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Shares of steel companies are trading higher between 2-5% on the BSE on reports that the finance ministry may hike the import duty on long and flat steel products to curb imports and protect the ailing domestic industry. CLICK FOR FULL REPORT
India’s total steel import has jumped by 71% to 9.31 million tonnes in 2014-15 from 5.45 mt last year, with Chinese imports contributing the most. Excess production in China along with sluggish demand in the European markets has hurt the steel companies.
Meanwhile, SAIL , JSW Steel and Essar Steel have filed a petition with the directorate general of safeguards on imported hot-rolled (HR) steel coil. According to the safeguard norms, the process can be initiated if the majority of market entities are being affected by cheaper imports. The three companies constitute 68% of HR coil production. Reports suggest that the abovementioned companies have a backing Tata Steel, Jindal Steel & Power and Bhushan Steel. CLICK FOR FULL REPORT
Among the steel stocks, Tata Steel, SAIL, JSW Steel, JSPL and Bhushan Steel are trading higher between 2-1.5% on the BSE.
Tata Steel has incorporated its Long Products Europe (LPE) division into a new standalone wholly-owned subsidiary within its European operations to create a sustainable future. The stock is up 5%.
