Metal stocks ascend as DGTR considers steel industry’s import duty request

The stocks of metal companies surged on Monday as the Directorate General of Trade Remedies (DGTR) agreed to look into the steel industry’s request for levying an import duty.

The shares of Jindal Steel & Power Limited rose 4.34% to ₹947.50 per share, JSW Steel Limited increased 3.66% to ₹950.95 per share, and Steel Authority of India Limited gained 4.75% to ₹121.61 per share. The NIFTY Metal index rose 1.89% to 8,979.45 points during intraday trades. Tata Steel Limited, Hindalco Industries Limited, Vedanta Limited, and Adani Enterprises also registered more than 1% gains during the trading session.

The steel industry players have requested the Directorate General of Trade Remedies (DGTR) to levy a 25% safeguard duty on the import of steel and steel products. The DGTR has thus launched an investigation into the imports of 'Non-Alloy and Alloy Steel Flat Products’ that are utilised in various industries like fabrication, construction, capital goods, pipe-making, automobiles, tractors, bicycles, electrical panels, etc.

The Indian Steel Association filed the complaint on behalf of its members, including ArcelorMittal Nippon Steel India, AMNS Khopoli, JSW Steel, JSW Steel Coated Products, Bhushan Power & Steel, Jindal Steel and Power, and the Steel Authority of India, under the Customs Tariff Act of 1975.

At close on Monday, the shares of Jindal Steel & Power Limited were 3.61% higher at ₹940.80 per share, JSW Steel Limited added 2.15% to ₹937.05 per share, and Steel Authority of India Limited rose 4.38% to ₹121.29 per share. The NIFTY Metal index closed with 0.89% gains at 8,891.40 points.

Summary: 

Metal stocks gain as DGTR launches investigation after steel industry requests 25% safeguard duty against steel imports.