Incremental Steel Import Duty to Boost Domestic Industry Margins: Morgan Stanley

Morgan Stanley views the proposed 15% safeguard duty on steel imports as a positive development for the domestic steel industry, as it is expected to drive margins and improve profitability. The increased duty may lead to a 10% rise in domestic hot rolled coil (HRC) prices, which could enhance EBITDA by 15-40% for Indian steelmakers. This move aligns with the government’s Make in India initiative, aimed at reducing reliance on imports and strengthening domestic manufacturing. It also provides a level playing field for Indian steel companies against global competitors, especially as cheap imports from countries like China, Vietnam, and South Korea have been impacting domestic pricing and profitability. Listed Indian steel companies expected to benefit from this policy include

, , , and . These firms are likely to witness improved pricing power and profitability in the near term. Learning Comment: Import duties are often used as a strategic tool to protect domestic industries and ensure fair competition. However, while such policies support local manufacturers, they may also increase costs for end consumers. Balancing industry growth and affordability remains a key challenge for policymakers. Source: NDTV Profit No Recommendations