Steel products protection service: The stocks of the steel sector will win traction on Tuesday (April 22, 2025) after the categories of 12 percent service of the government or 12 percent, including coils, sheets and rolled plaques, to protect national players from import elevation.
In the expected lines, in early trade, Tata Steel, JSPL, Sail and JSW Steel recovered up to 3 percent in the maximum of the day.
Initially, the duty will be applicable for a total of 200 days.
The decision follows the recommendation of the DGTR, or the General Directorate of Commercial Remedies, the investigating arm of the Ministry of Commerce.
“… the central government after considering these findings of the general director (commercial remedies), therefore … a duty of provisional safeguarding at a rate of twelve AD VALEM”, according to a notification of the income department.
In motion, the steel stocks listed in India, namely, Tata Steel, Jsw Steel, Jindal Steel and Steel Authority of India (Sail) will win traction.
The center has established import prices between $ 675 per ton at $ 964 per ton for the five categories of steel products. Any imported shipping below import prices would attract the duty of safeguarding, added the PTI report.
In addition, this safeguard duty will not be imposed on the categories of products when india is imported at the specific import price or above CIF (basic insurance freight), according to the notification.
Morgan Stanley on the imposition of safeguard taxes
Just despite the duty, national prices are a 18 percent premium, in addition, the Global Morgan Stanley broker said that even after the imposition of taxes, internal prices are 5 percent expectations.
In the midst of the price change, the brokerage sees an impact of 7-8 percent on the EBITDA of the companies of the steel sector.
See the movement to benefit actions such as JSW Steel, Tata Steel and Sail.
Anil Singhvi view on the stocks of the steel sector
Zee Business’s managing editor, Singhvi, said that the imposition of 12 percent of the importation of the importation of steel products from China and Vietnam was in demand for a long time. He added that while the movement is positive for the stock of the steel sector, it does not have great relief for them.
According to the market guru, the step is positive for actions such as Sail, JSPL and JSW Steel, which recovered up to 1 percent in the last count in early trade.
The expert recommends not pursuing actions, since the reservation of profits is expected at higher levels.
(With PTI inputs)
