Indian metal stocks were trading lower early on Monday, following U.S. President Donald Trump’s decision last week to levy hefty tariffs on imported steel and aluminium to protect local industry.
Tata Steel was trading down 2.27% at ₹659.95, Steel Authority of India Ltd was trading down 3.83% at ₹77.85, Hindalco Industries was trading down 3.41% at ₹232, Vedanta was trading down 1.53% at ₹ 318.25, and JSW Steel was trading down 5% at ₹292.15 on the Bombay Stock Exchange.
According to research firm Maybank Kim Eng, India's steel and aluminium exports (2-2.4% of U.S. imports) to the U.S. are negligible and the imposition of high tariff on these two metals is not significant.
However, it said, if the trade war escalated to other products, it could hurt and the manufacturing investments undertaken in the country.
The move could affect India indirectly because it is a net steel exporter and U.S. curtailing its imports will create a glut in the global steel supply, bring down prices, it added.
Published - March 05, 2018 10:33 am IST
