Steel stocks clocked double-digit gains on Monday, with the Street positively reacting to the government’s anti-dumping levy on low-cost stainless steel imports to protect domestic players.
Jindal Stainless surged 12%, Maharashtra Seamless rose nearly 1% and ISMT rose 1.5%, as the government levied anti-dumping duty on imports of cold-rolled flat steel products.
Analysts opined that steel stocks were in limelight after the government on Friday imposed import duties for five years on some stainless steel imports from China, the European Union and the US.
JSW Steel jumped 5.5% to a nine-month high. Jindal Steel, Tata Steel and Steel Authority of India (SAIL) advanced 1.5-4.7% with huge trading volume on hopes that the import duty could be imposed on other categories of steel products.
Low-cost steel products imported from China will attract an additional duty of 57.39%. An anti-dumping duty of 52.6% has been levied on imports of steel products from the European Union, 13.4% on imports from South Korea and almost 37% on imports from South Africa, according to the notification from Central Board of Excise and Customs (CBEC).
The anti dumping duty on imports from US and Thailand is in the range of 5-9%.
The CBEC observed there is continued dumping of subject goods from the subject countries though the volume of imports has declined after imposition of duties. “The performance of the domestic industry has deteriorated in the current injury period due to the impact of dumped imports from the subject country and diversion of imports to product ranges outside the scope of the product under consideration.
The dumping is likely to continue and the performance of the domestic industry is likely to deteriorate, should the present anti-dumping duty is revoked,” CBEC noted.