Metal Stocks Outlook
for the week – 11 to 15.07.2016
(Seen positive next
week; Tata Steel eyed)
Stocks of major metal and mining companies are seen trading
higher next week, tracking prices of
metals in the global markets, and on expectations that the
Centre will impose certain measures to
protect domestic steel and aluminium companies.
Earlier this week, Steel Secretary Aruna Sundararajan said
that the steel ministry in its proposal to the
Prime Minister's office has sought an extension of minimum
import price on steel products beyond
Aug 5.
The government had on Feb 5 imposed the tariff measure on
173 steel item lines, in the range of $341- $752 per tn, for six months to curb cheaper imports from
China, Japan, Korea, and some other
countries.
Mines Secretary Balvinder Kumar on Tuesday said the ministry
has asked aluminium makers to make
representations, seeking to increase the import duty on
primary aluminium products by another 250-
500 basis points. The Union Budget 2016-17 (Apr-Mar) had
increased import duty on primary
aluminium products by 2.5 percentage points to 7.5%.
Stocks of Tata Steel will be eyed next week as the company
will reportedly hold a board meeting
today to decide on the sale of its UK business. According to
a BBC report, the company may
announce
a halt on the sale of one of its units in its UK business.