As expected, today morning the BSE Metal index is deep down in the red with all the ten stocks in tis index showing a decline led by NMDC, SAIL, Jindal Steel, JSW Steel, Hindalco, Nalco.

Blame it all on Trump! Over the weekend, US secretary of commerce recommended a global tariff of at least 24% on all steel imports and at least 53% on imports from 12 countries — Brazil, China, India, Russia, Korea, South Africa, Malaysia, Thailand, Vietnam, Costa Rica, Egypt and Turkey. 

USA is the biggest importer of steel and total exports from India to USA is only around 2%. The impact might not be debilitating but the fear hounding the traders is that because of the this development, shipments from other countries heading to USA might now end up getting dumped in India. This dumping is what could cause a huge dent on Indian steel industry.

To counter this threat, India might have to act swift with its own inti-dumping duties what with current minimum import price of steel quoted so much more lower than the current market rates. Thus if margins of Indian steel makers is to be protected, India will have to hike anti-dumping duties and protect the domestic industry. Till that uncertainty prevails, metal stocks in India will be under pressure.