GOVERNMENT IS BACKING DOUBLING IMPORT DUTY ON CHINESE STEEL
News: As per media sources, the government is seeking a 100% increase in basic custom duty on the import of steels by raising to 15% from existing 7.5% rate.
Views: This marks the first instance of the government recognizing the rise in finished steel imports from China. The surge in imports has pressured domestic steel prices, which currently stand ~Rs 48,200/tonne. Thus, any increase in import duties, particularly on Chinese steel, would benefit the domestic steel industry. Within this space, JSW Steel stands out as our top pick due to its ambitious expansion target of 50 MTPA by 2031, a strong product lineup, and healthy profitability outlook.
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