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News: As per media sources, Domestic steelmakers have been advocating for imposing temporary tax to curb the cheap steel imports from China, Japan, and South Korea. Additionally, the government is actively addressing concerns related to substandard steel imports to the country.
Views: This is amidst Indian steel imports reaching 7 years high of 5.7 million tons during the April-October 2024. This sharp increase has adversely impacted the revenue and profitability of domestic steel companies. Thus, if above measures being implemented will provide significant relief to domestic steel players. Within the steel space, we prefer JSW steel given its strategic capacity expansion, favourable steel demand domestically and anticipated profitability improvements.
Impact: Positive