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Global trade protectionism poses low-to-moderate risk to Indian steel cos: Ind-Ra

Business Finance

Press Trust of India  |  New Delhi 

Global trade protectionism poses low-to-moderate risk to steel producers in India as there is lesser dependence on exports and safeguard measures on imports, India Ratings and Research (Ind-Ra) said Thursday.

"Global trade protectionism poses low-to-moderate risk to Indian steel producers because of low reliance on exports and safeguard measures on imports," it said in a statement.

On March 9, US President Donald Trump imposed heavy tariffs on imported steel and aluminium items, a move that has sparked fears of a global trade war.

Thus, an upward revision of the anti-dumping measures to the extent of raw material cost push could be essential, India Ratings and Research said.

The rating agency said that it has maintained a stable outlook on the steel sector for the remaining part of FY'19, in view of a healthy domestic and global demand growth and supply discipline.

"However, EBITDA could be affected by about INR3,000/tonne because of growing global trade frictions resulting in increased exports to India from ASEAN and China," it said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, September 06 2018. 19:45 IST