Wait...
  1. Home >
  2. Export Import News >
  3. Export News >
  4. Steel stocks melt amid fears of steep US tariff, slowing China growth >
  5. Steel stocks melt amid fears of steep US tariff, slowing China growth

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Steel stocks melt amid fears of steep US tariff, slowing China growth.


Date: 17-07-2018
Subject: Steel stocks melt amid fears of steep US tariff, slowing China growth
Fears of a slowdown in the Chinese economy in the second quarter, and steep tariffs imposed by the United States on steel imports having an indirect impact on the domestic steel market spooked the investors on Monday, leading to a sharp fall in the share prices of steel companies.

The fall was led by Tata Steel shares, which slumped 7.5% during intra-day trade and settled 6.96% lower at Rs 519.30 a piece, on Bombay Stock Exchange. The share prices of other steel companies — Steel Authority of India (SAIL) and JSW Steel — also fell intra-day and closed down 4.89% at Rs 71.05 and nearly 3% at Rs 307.45 respectively. Tata Steel pulled down the BSE Metal Index as well, which closed 461.08 points down (3.7%) at Rs 12009.82 contributed by 175.78 points from Tata Steel.

With the Indian steel exports to the US being 3.3% of the overall exports, the steel companies as well as the government had maintained that the heavy tariff imposition of 25% by US president Donald Trump on steel imports will not impact domestic steel industry. However, on Friday, union steel minister Chaudhary Birender Singh said in a conference in New Delhi that there might be an indirect impact on the Indian steel market.

According to a PTI report, Singh said that countries exporting to the US would be forced to look at other major steel consuming markets like India to sell their surplus (produce) which can distort the domestic market due to dumping.
However, analysts have maintained that higher steel prices will aid the earnings of Indian steel companies, which are expected to report strong numbers for the three months of April-June 2018. Tata Steel’s group EBITDA is expected to be about Rs 7,200 crore ($1.05 bln), a rise of 11% compared with the previous quarter, Reuters quoted a Jeffries report.
SAIL is expected to show quarter-on-quarter EBITDA growth of 2%, while volumes are seen falling 12% q-o-q, and input costs rising due to higher coking coal costs, foreign brokerage is quoted.

On a year-on-year basis too, the earnings are expected to remain strong. Led by higher steel prices, analysts at Kotak Institutional Equities expect steel companies to report 43-90% year-on-year (-6 to 10% quarter-on-quarter) increase in EBITDA (earnings before interest, tax, depreciation and amortisation). Tata Steel’s India business, for instance, is expected to report EBITDA per tonne increase by Rs 2,000/tonne to Rs 17,900, which is 66% up y-o-y.

Meanwhile, JSW Steel is expected to report a y-o-y increase of 90% in the EBITDA to Rs 4,980 crore during Q1FY19 and Jindal Steel and Power a rise of 65% y-o-y to Rs 2,230 crore, analysts at KIE observed. However, according to Jeffries the focus will remain on the outlook, with domestic steel prices down 3%-10% led by a lull in seasonal demand. The brokerage has also warned regional prices/spreads could be moderate as Chinese output remains high, and demand may recede after a seasonally strong period, Reuters reported.

Source: financialexpress.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 12-12-2019
TRADE NOTICE No. 41/2019-20
Online filling and Issuance of Preferential Certificate of Origin under SAFTA and SAPTA for India's Exports to Nepal w.e.f. 18th December 2019

Date: 12-12-2019
Notification No. 35/2015-2020
Amendment in Para 2.25 of Foreign Trade Policy, 2015-20.

Date: 12-12-2019
Notification No. 63/2019 – Central Tax
Seeks to extend the due date for furnishing of return in FORM GSTR-1 for registered persons in Jammu and Kashmir having aggregate turnover more than 1.5 crore rupees for the months of July, 2019 to September, 2019

Date: 12-12-2019
Notification No. 64/2019 – Central Tax
Seeks to extend the due date for furnishing of return in FORM GSTR-1 for registered persons in Jammu and Kashmir having aggregate turnover more than 1.5 crore rupees for the month of October, 2019.

Date: 12-12-2019
Notification No. 65/2019 – Central Tax
Seeks to extend the due date for furnishing of return in FORM GSTR-7 for registered persons in Jammu and Kashmir for the months of July, 2019 to October, 2019.

Date: 12-12-2019
Notification No. 66/2019 – Central Tax
Seeks to extend the due date for furnishing of return in FORM GSTR-3B for registered persons in Jammu and Kashmir for the months of July, 2019 to September, 2019

Date: 12-12-2019
Notification No. 67/2019 – Central Tax
Seeks to extend the due date for furnishing of return in FORM GSTR-3B for registered persons in Jammu and Kashmir for the month of October, 2019

Date: 11-12-2019
Notification No. 65/2019-Customs (N.T./CAA/EXTENSION/DRI)
Appointment of CAA by DGRI - reg.

Date: 11-12-2019
Instruction No. 05/2019-Customs
Reporting of cases warranting action under PMLA.

Date: 10-12-2019
Notification No. 89/2019 – Customs (N.T.)
Appointing the date for enforcing section 88 (b) of the Finance (No. 2) Act, 2019 to bring out the changes in the First Schedule to the Customs Tariff Act, 1975.



Exim Guru Copyright © 1999-2019 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001