Metal Stocks Surge: SAIL Up 3.5 Per Cent, Tata Steel Trading Over 2 Per Cent Higher. See What Led To The Rally

Metal stocks saw an upward trend following the government's announcement on Tuesday of a proposed 12 per cent safeguard duty on specific steel products. 

A safeguard duty serves as a temporary tariff barrier designed to defend local industries against a sudden influx of foreign goods.

Source : ABPLIVE AI

Metal stocks surged high on Wednesday. Major steel players in the country such as SAIL Ltd, JSW Steel, Tata Steel, and Jindal Steel logged strong performance in the stock market today. The Nifty Metal index climbed 1.67 per cent and reached an intraday high of 9,185.20.

Around 10:21 AM, the shares of Steel Authority of India Ltd traded higher by 3.54 per cent and stood at Rs 112.75 apiece. Meanwhile, Tata Steel climbed nearly 2.5 per cent to trade at Rs 158.50 per share.

Metal stocks saw an upward trend following the government's announcement on Tuesday of a proposed 12 per cent safeguard duty on specific steel products. 
This measure, set to last 200 days, aims to protect the domestic industry from significant harm caused by a recent surge in imports. A safeguard duty serves as a temporary tariff barrier designed to defend local industries against a sudden influx of foreign goods.

Government Moves to Shield Domestic Industry

Issuing the order a day earlier, the Directorate General of Trade Remedies (DGTR), said, “Therefore, the Authority recommends imposition of provisional safeguard duty at the rate of 12 per cent ad valorem for 200 days pending final determination on imports of the product under consideration.”

The order emphasised the urgency of implementing the measure, stating that any delay could result in significant and potentially irreversible harm. It underscored the need for immediate provisional safeguard measures.  

“To counter the trade diversion from the US as well as any possible diversion from other countries that have put in place import barriers, any protective measure by India shall be at a level adequate to ward off the trade diversion,” the order further stated.  

The Directorate General of Trade Remedies (DGTR), operating under the commerce department, has invited stakeholders to submit their comments on the findings within 30 days. Following this period, an oral hearing will be conducted before issuing the final decision.