Export duty cut may not help Tata Steel, JSW as Street sees more pain in steel stocks - Check brokerage targets
According to a Finance Ministry notification, exports of specified pig iron and steel products as well as iron ore pellets will attract nil export duty. In the case of iron ore lumps and fines with more than 58 per cent iron, the rate of duty will be 30 per cent.
Steel Stocks, Tata Steel, JSW Steel: Tata Steel and JSW Steel traded in red on Monday, November 21, despite government announced to cut export duty on steel products and iron ore with effect from Friday, November 19, 2022– six months after imposition of the levy on May 21.
According to a Finance Ministry notification, exports of specified pig iron and steel products as well as iron ore pellets will attract 'nil' export duty. In the case of iron ore lumps and fines with more than 58 per cent iron, the rate of duty will be 30 per cent.
At 1:26 PM, Tata Steel quoted Rs 104.65 apiece, down by 0.81 per cent while JSW Steel declined more than 2 per cent to trade at Rs 694 on NSE.
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According to JP Morgan’s (JPM) report, removal of export duty is a positive sign though earnings uplift in the near term is unlikely. India’s steel exports from June to October was down by 63 per cent year-on-year (YoY) basis. Iron ore and pellet exports had also collapsed. According to JPM, fundamental earnings impact will be limited in the near term.
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