Shares of steel companies saw a rise for the second consecutive trading day. There is news that China is planning to cut steel production. This will balance demand and supply and reduce the risk of cheap Chinese exports.
Steel Stocks: Shares of steel companies rose for the second consecutive trading day. The reason for this is the report that the government is preparing a national mission of ₹ 5,000 crore to promote sustainable steel production. At the same time, there are also reports that China may cut steel production in 2025. Apart from this, the Directorate General of Trade Remedies (DGTR) (formerly known as the Directorate General of Anti-Dumping and Allied Duties) has recommended a 12% safeguard duty on steel for three years. Let us tell you that safeguard duty means that the government protects the domestic industry by imposing tax on imports.
Bumper rise in the shares of these companies
Tata Steel climbed 3% to ₹ 172.45 in intra-day trade on Monday, which is its new 52-week high. It surpassed the previous record of ₹ 170.20 made on 30 September 2024. Apart from this, SAIL shares jumped 4% to ₹ 134.70. The stock has climbed a total of 6% in the last two trading sessions. At the same time, shares of JSW Steel and Jindal Steel & Power (JSPL) also registered a gain of 2%. Apart from this, BSE Metal and Nifty Metal Index were the top gainers among the sectoral indices during trading. Both these indices rose by about 1.2%, while in comparison, BSE Sensex and Nifty 50 registered a gain of only 0.3%. The BSE Metal Index has also outperformed the market in the last five trading sessions. The index gained 6% during this period, while the benchmark index rose only 1%.
What is the government’s plan
According to media reports, the government is preparing a national mission with a budget of ₹5,000 crore to promote sustainable steel production. Both primary and secondary steel producers will be included in this scheme. Its main objective is to promote decarbonization in the steel sector, that is, to reduce carbon emissions in the production process. For this, the government will provide financial assistance to the companies. Apart from this, there is also news that China is planning to cut steel production. This will balance demand and supply and reduce the risk of cheap Chinese exports.
