Shares of Tata Steel surged over 3% to Rs 177.49 in Tuesday’s early trade after the European Commission unveiled a plan aimed at protecting the European steel industry from the adverse impacts of global overcapacity — a move seen as positive for Tata Steel’s European operations.
The EU’s proposal includes reducing tariff-free import volumes to 18.3 million tons per year, a significant 47% cut compared to 2024 steel quotas. It also plans to double the duty on out-of-quota imports to 50%, up from the current 25% under the safeguard measures.
In addition, the EU will strengthen the traceability of steel imports by introducing a “Melt and Pour” requirement — a measure designed to prevent circumvention and ensure that only legitimate steel producers benefit from quota exemptions.
These steps are widely seen as protective measures that will help stabilize the European steel market, where Tata Steel Europe holds a major presence. The announcement comes as a relief for the company, which has been facing profitability pressures in its UK and Netherlands operations amid cheaper imports and global price fluctuations.
At 9:33 AM, Tata Steel was trading 3.23% higher at Rs 177.49 on the NSE, compared to its previous close of Rs 171.94, pushing its market capitalization closer to Rs 2.2 lakh crore.
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