Steel cos get duty boost amid glut

The share prices of domestic steel producers have risen by 4-6% since 30 December after the finance ministry notified the extension of safeguard duty imposition on steel imports, as per the recommendation of the director general of trade remedies.

- Ashish Agrawal [e-mail]

The big gainers here are JSW Steel Ltd and Jindal Steel Ltd (formerly Jindal Steel & Power Ltd), which increased 6%.

The duty would be levied for three years on most grades of flat steel products at 12% for the first year, 11.5% for the second and 11% for the third year. Recall that the ministry had notified an interim order imposing the duty in April to stop the surge in imports, which had lapsed on 7 November. The delay suggests a reluctance on the part of the ministry due to the adverse impact of higher steel prices on consuming industries, particularly small and medium-sized enterprises, which are already facing headwinds due to lower exports.