Metal Stocks Outlook for the week – 21 to 25.03.2016
Seen
up on likely extension of safeguard duty
( www.rupeedesk.in )
Stocks
of major metals and mining companies are seen trading up next week due to the
likely
extension
of safeguard duty on steel products till 2018, as well as improved sentiment
after the
imposition
of minimum import price by the government on 173 steel products. The Director
General
of
Safeguards has recommended extension of safeguard duty on certain steel
products till Mar 31,
2018,
to protect the domestic steel industry from cheap imports. The steel industry
has already seen
some
recovery after the imposition of minimum import price by the government.
The
safeguard duty will act as a major boost to the steel industry, as prices are
already improving and
this
measure ensures some support for domestic manufacturers. Since January, domestic
steel prices
have
risen by around 3,000 rupees, while international prices have risen around 15%,
Tata Steel
Managing
Director T.V. Narendran had said at a recent media interaction. He added the
worst phase
for
the industry is behind it.