Steel Stocks Surge as Government Extends Safeguard Duties

Steel stocks soared as JSW Steel and others gained nearly 5% following the government's extension of safeguard duties on certain steel imports. This move is intended to protect local manufacturers and stabilize the market by curbing dumping from countries like China.

In a significant move impacting the steel industry, government policies have once again reshaped the market landscape. On Wednesday, steel stocks soared as the government extended safeguard duties on imports for three years, a strategic effort to curb dumping from countries like China and bolster domestic manufacturers amid fears of oversupply.

Significant gains were observed as JSW Steel shares jumped 4.89%, SAIL surged 4.18%, and other key players like Jindal Steel and Tata Steel also saw substantial increases. This favorable market condition resulted in the BSE metal index rising by 1.51% to 36,811.73, while both Sensex and Nifty experienced a notable uptick after several days of market decline.

The imposed safeguard duty starts at 12% in the first year, gradually reducing over the next two years. Analysts indicate this development provides long-term stability and pricing power for domestic players. Key industry figures, including Naveen Jindal and Ponmudi R, praised the move as a balanced policy measure, expecting elevated sentiment across the sector.

(With inputs from agencies.)