Tata Steel, JSW Steel To Benefit From India's Anti-Dumping Investigation Into Vietnam Imports, Says ICICI Securities

The Indian government's recent anti-dumping investigation into imports of hot-rolled coil (HRC) steel from Vietnam could positively impact domestic steel companies like Tata Steel and JSW Steel. This investigation was initiated by the Directorate General of Trade Remedies (DGTR) after a petition from the Indian Steel Association (ISA), which represents major steel producers, including JSW Steel and ArcelorMittal Nippon Steel India.

The investigation focuses on whether these imports are being sold at prices that harm the Indian steel industry. If the investigation concludes that dumping has occurred, it could lead to the imposition of anti-dumping duties on these imports, potentially driving up domestic HRC prices, which have been weak since December 2020.

However, ICICI Securities notes that while this move could provide some relief, its overall impact may be limited since China, not Vietnam, is the primary exporter of steel to India. Moreover, the probe might lead to reciprocal actions, as Vietnam has also started a similar investigation into Indian steel imports. The brokerage has maintained a positive outlook on Tata Steel and JSW Steel, with target prices of ?200 and ?1,140, respectively.

Additionally, the probe is seen as part of broader concerns within the domestic industry about low-cost steel imports, especially from countries like China, which use Vietnam as a conduit under the India-ASEAN Free Trade Agreement. The DGTR's investigation will cover imports between January 1, 2023, and March 31, 2024? (The New Indian Express)? (Money Control)? (Telegraph India).