Steel Stocks Rally in Early Trade; NMDC Steel Jumps over 8%

Steel stocks were in the limelight on Wednesday after the commerce ministry's investigation arm DGTR recommended imposition of a 12 per cent provisional safeguard duty for 200 days on certain steel products with an aim to protect domestic players from surge in imports.

Shares of NMDC Steel jumped 8.33 per cent, Steel Authority of India rallied 5 per cent, Tata Steel climbed 2.97 per cent, JSW Steel advanced 2.84 per cent, Jindal Stainless went up by 2.35 per cent and Jindal Steel & Power (2.14 per cent) on the BSE.

The 30-share BSE benchmark Sensex traded 122.37 points higher at 75,426.89. The NSE Nifty went up by 60.45 points to 22,894.75.

Last year in December, the Directorate General of Trade Remedies (DGTR) started the investigation into the sudden surge in imports of 'Non-Alloy and Alloy Steel Flat Products', used in various industries, including fabrication, pipe making, construction, capital goods, auto, tractors, bicycles, and electrical panels.

The investigations were conducted following a complaint from 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 and Power; and Steel Authority of India Limited.

The directorate in its probe has preliminarily found that there is a recent, sudden, sharp and significant increase in the imports of these products into India, causing and threatening to cause serious injury to the domestic industry/producers.

The directorate has said in a notification dated March 18 that there exist critical circumstances, where any delay in application of provisional safeguard measures would cause damage which would be difficult to repair.

There is a necessity for immediate application of provisional safeguard measures.

"The authority recommends imposition of provisional Safeguard Duty at the rate of 12 per cent ad valorem for 200 days pending final determination on imports of the product under consideration," the DGTR has said in a notification.

The finance ministry will take the final decision to impose the duty.