New Delhi, March 19: Steel stocks jumped on Wednesday after the commerce ministry’s investigation arm DGTR recommended imposing a 12 percent provisional safeguard duty for 200 days on certain steel products aimed at protecting domestic firms from a surge in imports.
On the BSE, shares of NMDC Steel rose 8.33 percent, Steel Authority of India 5 percent, Tata Steel 2.97 percent, JSW Steel 2.84 percent, Jindal Stainless 2.35 percent and Jindal Steel & Power 2.14 percent.
The 30-share BSE benchmark Sensex was trading 122.37 points higher at 75,426.89. The NSE Nifty rose 60.45 points to 22,894.75.
In December last year, the Directorate General of Trade Remedies (DGTR) had initiated an investigation into the sudden surge in imports of ‘non-alloy and alloy steel flat products’ used in various industries including fabrication, pipe manufacturing, construction, capital goods, auto, tractor, bicycle and electrical panels.
The investigation was initiated following a complaint by the Indian Steel Association on behalf of its members including ArcelorMittal Nippon Steel India; AMNS Khopoli; JSW Steel; JSW Steel Coated Products; Bhushan Power & Steel; Jindal Steel & Power; and Steel Authority of India Ltd.
The Directorate in its investigation has preliminarily found that there has been a recent sudden, sharp and significant increase in imports of these products into India, which is causing and is likely to cause serious injury to the domestic industry/producers.
Serious circumstances exist where any delay in the application of provisional safeguard measures would result in damage which would be irreparably difficult to repair, the Directorate has said in its March 18 notification. The provisional safeguard measures need to be implemented immediately.
“The authority recommends imposition of provisional safeguard duty at the rate of 12 percent for a period of 200 days till a final determination is made on the import of the product under consideration,” DGTR said in a notification. The final decision on imposition of duty will be taken by the Finance Ministry.
Steel stocks gain on safeguard duty recommendation
