Metal stocks in India: Tata Steel and SAIL shares were trading in green on Monday after the government imposed a minimum import price (MIP) on 173 steel products ranging between $341 to $752 per tonne. The move will give relief to domestic steel producers against cheap in-bound shipments.
JSW Steel, Tata Steel and SAIL shares rose as much as 4 per cent, 4.19 per cent and 4.60 per cent, respectively, in trade. The BSE Metal index was trading 0.53 per cent up at 6,935 (at 12.20 pm).
“MIP is introduced against 173 HS Codes (iron and steel products),” the Directorate General of Foreign Trade (DGFT) said in a notification.
The minimum price will remain in place for six months only. However, it will not apply on imports under the advance authorisation scheme and high-grade pipes used in the petroleum and natural gas industry.
Market analysts believe steel firms may raise domestic prices but long-term impact could be muted. According to JM Financial, even with hikes, EBITDA per tonne could still be lower than forward looking estimates.
“We continue to remain negative on the space in absence of a fundamental turnaround in the Chinese steel industry,” JM Financials said in a research note.
Jindal Steel shares were trading 1.02 per cent down at Rs 62.80 (at 12.30 pm).
(With agency inputs)