Should You Buy Steel Stocks Now? What Experts Are Saying

Steel Stocks: The Indian government has added a 12% safeguard duty on the import of non-alloy and alloy flat steel products. This duty will stay for 200 days. The aim is to protect local steel makers from cheap foreign imports. Threshold prices have also been set—meaning, if import prices cross a certain level, the duty won’t apply.

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Big Steel Companies React to the Move

Top steel companies like Tata Steel, JSW Steel, JSPL, and SAIL are reacting to this new duty. Their stock prices may see short-term changes because of this development.

Morgan Stanley’s Take: Use Any Rally to Sell

Global brokerage Morgan Stanley said this move was expected and brings clarity to the market. However, they advised caution. If steel stock prices go up for a short time, investors should consider selling rather than buying more.

Domestic Steel Stocks Prices Already Too High

Morgan Stanley explained that current domestic hot rolled coil (HRC) prices in India are 18% higher than global prices. Even after the duty, Indian prices will still be 5% more than import parity. So, there's little room for prices to rise further.

Steel Shares Have Dropped in Last One Month

In the last one month, shares of Tata Steel, JSW Steel, JSPL, and SAIL have dropped by 1% to 11%. Despite the duty news, analysts don’t expect a major long-term boost unless global demand or pricing changes.

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