- 07 Nov 2024
- ICICI Securities
GOVERNMENT PLANS TO INTRODUCE ADDITIONAL STEEL PRODUCTS UNDER BIS FRAMEWORK
News: As per media sources, the government is considering expanding the Bureau of Indian Standards (BIS) framework to include additional steel products. This plan also involves broadening the classification of current steel standards to prevent products with slight variations from bypassing checks at ports.
Views: If implemented, this initiative would bring significant relief to domestic steel manufacturers, especially considering Indian steel imports increase by 41.3% YoY to 4.7 million tons in the first half of FY25. This increase has put pressure on the revenue and profitability of domestic steel companies. Thus, the implementation of these BIS standards would help curb the influx of low-cost steel imports from China and other ASEAN nations. Within the steel space, we prefer JSW Steel given its strategic capacity expansion, favorable steel demand domestically and anticipated profitability improvements.
Impact: Positive