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

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.