Steel stocks melt after government hikes export duty on steel products
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Steel stocks were trading lower after the government levied export duty on 11 iron and steel intermediates and key steel products. The government levied export duty of 15 per cent on almost all the major steel products (including stainless steel).
Tata Steel is currently trading at Rs. 1034.80, down by 135.40 points or 11.57% from its previous closing of Rs. 1170.20 on the BSE. The scrip opened at Rs. 1110.00 and has touched a high and low of Rs. 1110.00 and Rs. 1003.15 respectively.
Steel Authority of India (SAIL) is currently trading at Rs. 74.60, down by 8.40 points or 10.12% from its previous closing of Rs. 83.00 on the BSE. The scrip opened at Rs. 78.35 and has touched a high and low of Rs. 78.35 and Rs. 72.20 respectively.
JSW Steel is currently trading at Rs. 548.50, down by 82.35 points or 13.05% from its previous closing of Rs. 630.85 on the BSE. The scrip opened at Rs. 602.60 and has touched a high and low of Rs. 602.60 and Rs. 548.00 respectively.
The government has waived customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry, a move which will lower the cost for the domestic industry and reduce the prices. Also, to increase domestic availability, the duty on exports of iron ore has been hiked up to 50 per cent, and a few steel intermediaries to 15 per cent. The duty changes are effective from May 22, 2022.
The government stated the import duty on ferronickel, coking coal, PCI coal has been cut from 2.5 per cent, while the duty on coke and semi-coke has been slashed from 5 per cent to 'nil'. The tax on the export of iron ores and concentrates has been hiked to 50 per cent, from 30 per cent, while that on iron pellets a 45 per cent duty has been imposed.
It mentioned duty on pig iron and spiegeleisen in pigs, blocks, or other primary formats; flat-rolled products of iron or non- alloy steel, of a width of 600 mm or more, hot- rolled, not clad, plated or coated; Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold- rolled (cold-reduced), not clad, plated or coated, Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated have been hiked to 15 per cent from 'Nil' currently.
Also, 15 per cent duty has been imposed on flat-rolled products of stainless steel of width greater than or equal to (>=) 600mm, other bars and rods of stainless steel; angles, shapes and sections of stainless-steel; bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel.
