Investec on metals: DGTR initiates safeguard investigation, Tata Steel and JSW Steel may benefit

The Directorate General of Trade Remedies (DGTR) has launched a safeguard investigation following an appeal from the India Steel Association. This move comes as the domestic steel industry seeks protection against rising imports. According to reports, the proposed measures include provisional tariffs of 25% for a period of four years, aimed at curbing excessive imports and supporting local producers.

If implemented, these tariffs will target countries contributing more than 3% of import volumes during the investigation period. This specific criterion is designed to reduce the scope of circumvention, ensuring that the measures effectively safeguard the domestic steel industry.

Investec believes that major players like Tata Steel and JSW Steel stand to be significant beneficiaries of this move. By mitigating the competitive pressure from imports, the tariffs could bolster their market position and improve pricing power in the domestic market.

However, the final implementation of these measures and their impact on the broader steel market remain contingent on the outcome of the investigation.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making investment decisions.

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