Steel stocks shine bright; surge up to 9%

Steel stocks today surged by up to 9 per cent after the government extended the safeguard duty on import of some steel products by two years, till March 2018, to protect the domestic industry.
Shares of Sathavahana Ispat zoomed 8.91 per cent, Tata Steel surged 6.75 per cent and Kalyani Steels jumped 5.27 per cent.
Among others, Steel Authority of India Ltd rose 3.82 per cent, Jindal Steel & Power (3.31 per cent), JSW Steel (3.25 per cent) and Shah Alloys (2.81 per cent) on BSE.
The government today extended the safeguard duty on import of some steel products by two years, till March 2018, to protect the domestic industry from onslaught of cheap supplies from China amid a global glut.

The safeguard duty of 20 per cent, which will be reduced to 10 per cent in stages over the next two years, shall not be imposed on steel products which are imported at or above the minimum import price (MIP).
MIP helps in setting a floor price, which in turn discourages steel imports below this price.
The government had first imposed the safeguard duty in September last year, which expires tomorrow.