JPMorgan has highlighted a positive outlook for Indian steel stocks following the 12% safeguard duty imposed for 200 days on steel imports. The brokerage expects domestic hot-rolled coil (HRC) prices to rise by ₹2,000 per tonne, benefiting major steel producers.

Key factors driving the rally in steel stocks

  1. Steel safeguard duty: The recently announced 12% safeguard duty aims to protect domestic manufacturers from surging imports, providing a pricing advantage to Indian steelmakers.
  2. China’s output cuts: Reduced production in China has tightened global steel supply, supporting higher prices.
  3. German infrastructure fund: Increased spending in European infrastructure projects is expected to boost steel demand.

Expected beneficiaries

  • Tata Steel, JSW Steel, and SAIL are projected to see positive stock reactions as they stand to gain from improved pricing power and demand recovery.

JPMorgan remains constructive on the Indian steel sector, citing favorable policy support, global supply constraints, and infrastructure-driven demand growth as key tailwinds.

(Disclaimer: This article is for informational purposes only and does not constitute financial advice.)

Add us as preferred source on Google