metal stocks are caught in the US-China tariff crossfire
After weeks of getting hammered on fears of a US recession and tariff tantrums, metal stocks have finally found some footing. A 90-day pause on fresh US-China tariffs, whispers of a China stimulus package, and a sliding US dollar have given the space a much-needed ***** it’s still caution over cheer for these stocks.
That’s because the real risk isn’t gone — it’s just circling. With the US proposing a 145% tariff on Chinese steel, Beijing’s likely countermove could be flooding other markets with exports. India, as the world’s second-largest steel producer, could find itself directly in the splash zone. Analysts warn that while Indian companies are largely domestic-oriented, they’re still vulnerable to price shocks from a global glut.
Integrated or insulated?
The fallout won’t be equal. Non-integrated steelmakers like JSPL and JSW Steel are seen as relatively better shielded, thanks to weak iron ore prices and nimble operations.