- 19 Jun 2023
- ICICIdirect Research
UK REMOVES COUNTERVAILING TARIFF ON STEEL BAR, ROD IMPORTS FROM INDIA.
News: The UK government has announced the removal of an up to 4% countervailing tariff on stainless steel bars and rods imported from India due to a perceived low impact on local suppliers. The UK's Trade Remedies Authority (TRA) has indicated that its recommendation that the countervailing measure on imports of stainless steel bars and rods from India be revoked has been agreed by the UK government. The TRA concluded that although subsidised imports would continue from India if the countervailing measure were no longer applied, it is unlikely that the UK industry would be injured if the measure was no longer in place. Trade association UK Steel said there is minimal supply to the UK market of stainless bars and rods by UK producers and therefore very low risk of injury resulting from the removal of the measure. According to official statistics, in 2022 India accounted for the UK's third biggest source of stainless steel bars and rods in tonnage.
View: This development augurs well for Jindal Stainless (JSL). JSL has recently commissioned it's new capacity and is eyeing a 20% growth in volumes in FY24E. The removal of countervailing tariff by UK authorities would JSL to increase its export volumes and also aid in achieving overall volume growth in FY24E.
Impact: Positive