Posted on 02 Feb 2017
Steel sector stocks remain cautious ahead of the Budget 2017 announcement, where the sector is expecting protectionist support from the Finance Minister to deal with domination of the external sellers.
With higher focus on infrastructural development, demand for steel would increase, and thereby safeguarding the interests of domestic steel manufacturers becomes vital.
Protectionist attempts like hiking minimum import prices and anti-dumping duty on steel products has been rolled out by the government but to relax the prevailing choppiness in the commodities section, further tightening of policies is expected.
The steel sector is also expecting government to waive off import taxes on the raw materials used in steel manufacturing, like coking coal and iron ore.
The steel industry is hoping for a waiver on import duty on raw materials such as coking coal and iron ore. The industry is also looking for a boost to various infrastructural segments, which in turn will widen the scope for steel consumption in the country.
Moreover, rationalising freight, charged by rails for transportation of steel raw materials and finished products will be boosted.
