On March 5, steel stocks (the shares of companies that make steel) went up in value because China announced that it would restructure its steel industry to reduce its total steel production.
China is one of the largest steel producers in the world, and for a long time, it has been producing more steel than its own market needs. Because of this, China often sold its extra steel at very low prices (a practice called “dumping”) in other countries, including India. This made it harder for Indian steel companies to compete, as they couldn’t sell their steel at such low prices.
By reducing its steel output, China is expected to produce less steel, which means there will be less cheap Chinese steel flooding the Indian market. This is good news for Indian steel companies because it helps them sell their steel at better prices, without as much competition from cheap imports.
Indian steel companies have also requested anti-dumping duties on several steel products, including hot-rolled, cold-rolled, and coated steel, primarily from China, South Korea, and Japan. The duties requested range from $100 to $500 per tonne to prevent unfair pricing practices that harm domestic producers. They have also sought the extension of these duties to protect the industry from cheap imports and ensure a level playing field for local manufacturers. The government has been reviewing and, in some cases, implementing these duties.
Nifty Metal Index
Nifty metal index has risen by 3.35 percent in the day’s trade from the opening price of Rs. 8,322.20 to a high of Rs. 8,629.45.
The stocks to keep under your radar
Tata Steel Ltd
Tata Steel is one of the largest steel manufacturing companies in India and a part of the Tata Group. It produces a wide range of steel products for industries like automotive, construction, and engineering.
With a market capitalization of Rs. 1,79,761.570 crores on Wednesday, the stock jumped upto 4 percent making a high of Rs. 145.00 per share compared to its previous closing price of Rs. 139.30 per share.
Welspun Corp Ltd
Welspun Corp is a leading player in the global steel pipe industry, specializing in manufacturing pipes for the oil and gas, water, and infrastructure sectors. It is part of the Welspun Group and has a significant presence in North America, Europe, and the Middle East.
With a market capitalization of Rs. 19,728.67 crores on Wednesday, the stock jumped upto 6.4 percent making a high of Rs. 754.70 per share compared to its previous closing price of Rs. 709.05 per share.
Vedanta
Vedanta is a global natural resources company with interests in metals, mining, oil, and gas. It is one of the largest producers of zinc, copper, and aluminum in India. Vedanta operates in multiple countries and is a key player in the mining and resources sector, with a focus on sustainable development.
With a market capitalization of Rs. 1,65,448.52 crores on Wednesday, the stock jumped upto 4.4 percent making a high of Rs. 424.80 per share compared to its previous closing price of Rs. 406.75 per share.
JSW Steel Ltd
JSW Steel is a leading steel manufacturer in India and a part of the JSW Group. It produces a variety of steel products used in construction, automotive, and heavy engineering. With a strong domestic presence and a growing global footprint.
With a market capitalization of Rs. 2,43,701.71 crores on Wednesday, the stock jumped upto 2.5 percent making a high of Rs. 999.00 per share compared to its previous closing price of Rs. 974.55 per share.
Jindal Steel & Power Limited
Jindal Steel & Power Limited (JSPL) is one of the largest steel and power producers in India. The company manufactures steel products for sectors like construction, energy, and infrastructure. JSPL is known for its integrated steel production facilities and significant investments in modern technology.
With a market capitalization of Rs. 89,757.55 crores on Wednesday, the stock jumped upto 2.3 percent making a high of Rs. 887.90 per share compared to its previous closing price of Rs. 867.10 per share.
Written by Sridhar J
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