- 12 Sep 2024
- ICICIdirect Research
GOVERNMENT EXTENDED ANTI-SUBSIDY DUTY ON WELDED STAINLESS-STEEL PIPES AND TUBES IMPORTED FROM CHINA AND VIETNAM
News: As per media sources, the government has extended anti-subsidy duty by imposing countervailing duty between 12% and 30% on the imports of welded stainless-steel pipes and tubes from China and Vietnam for the period of next five years.
Views: This move offers relief to the domestic stainless-steel industry, which has been struggling with low-cost exports from China and Vietnam. This extension particularly benefits Jindal Stainless, a leading player in the domestic stainless-steel space. We maintain a positive outlook on the stock given the inherent benefits of stainless steel such as low maintenance, and low life cycle cost, as well as healthy demand prospects in infrastructure and consumer durable, and significant capacity expansion in pipeline, which will support the company’s growth over the long term. This is also positive for downstream players such as Ratnamani Metals & Tubes ltd who operate in this domain.
Impact: Positive