GOVERNMENT PLANS TO IMPOSE UP TO 25% TEMPORARY TAX ON STEEL IMPORTS
News: As per media sources, the government is considering imposing a temporary tax of up to 25% on steel imports particularly from China. This move will follow the completion of an ongoing investigation, which is expected to conclude within the month.
Views: This is a positive development as steel imports have surged to 7 year's high of 6.5 million tons (MT) in the period between April to Nov 2024, putting considerable strain on the revenue and profitability of domestic steel companies. Thus, if the above measures implemented will provide significant relief to domestic steel players. Within the steel space, we prefer JSW Steel given its strategic capacity expansion, favorable steel demand domestically and anticipated profitability improvements.
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