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.
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