Steel News: Domestic steel companies are likely to get great relief. The Directorate General of Business Treatment has recommended a 12% security fee on steel. This recommendation is waiting for approval from the cabinet. Non-sweet metal and alloy steel flat products are proposed for 200 days. Due to this, steel stocks will be monitored today. The market will be eyeing the shares of JSW Steel, Tata Steel, Cell and JSPL today. At the same time, brokerage firms have also expressed their advice on this proposal of DGTR. Let’s know the attitude of brokerage firms –
JP Morgan on Steel
JP Morgan, who advised the steel sector, said that the proposal for 12% security fee is positive for steel companies. The price of domestic HRC may increase by Rs 2,000 per tonne. Cutting in production in China can cause steel stocks to rise. German Infra Fund and Safeguard Duty may see a boom in steel stocks. Tata Steel, JSW Steel and SAIL shares are expected to rise.
CLSA on metals
The CLSA said that the landscape of metal demand has improved due to China’s encouragement and increase in Europe. Security fees may benefit domestic steel companies. He said that we like supernatural metal companies. The brokerage firm has increased its targets for JSW Steel and Tata Steel. Brokerage has increased the target price of JSW Steel to Rs 825. While the target of Tata Steel has been increased to Rs 145.
Let us tell you that Moneycontrol had earlier said that the government is considering the idea of imposing fees between 10-15 percent as small players are emphasizing that high security fee can increase input costs. However, according to industry sources, major steel manufacturers are adamant on their proposal of high fee of 25 percent.
