Shares of steel and metal companies witnessed a sharp rise in early trading on December 23 after the Directorate General of Trade and Remedies (DGTR) initiated an investigation into the steel industry’s request for a 25% safeguard duty on steel imports.
This inquiry comes as the industry raises concerns over excessive steel imports impacting domestic manufacturers. CNBC-Awaaz, citing sources, reported that a provisional safeguard duty could be implemented based on the initial findings of the DGTR investigation, even before the final report is concluded.
Stock Performance:
- Coal India: Gained 0.64%, trading at ₹384.45
- JSW Steel: Rose 2.06%, trading at ₹936.25
- Hindustan Zinc: Fell 0.25%, trading at ₹467.65
- Tata Steel: Increased 1.50%, trading at ₹142.79
- Hindalco Industries: Up by 1.41%, trading at ₹631.45
- Jindal Steel & Power: Jumped 3.12%, trading at ₹936.40
- NMDC: Declined 0.32%, trading at ₹212.46
- Steel Authority of India (SAIL): Advanced 2.45%, trading at ₹118.95
Key Developments:
- Safeguard Duty Proposal: A potential safeguard duty of up to 25% is being considered to curb excessive steel imports and protect domestic producers.
- Market Reaction: Early trading saw significant gains in steel stocks as investors anticipated favorable measures for the industry.
The investigation aims to determine whether the influx of steel imports has adversely affected domestic players and to assess the necessity of imposing temporary protective measures. A decision on the matter is expected after a thorough review by the DGTR.
