Shares of steel major Tata Steel today improved on reports that the US International Trade Commission had rejected a request by US steel majors to impose steep import duties on five countries, including India.
The stock edged up 0.21 per cent to Rs 120.45 on the Bombay Stock Exchange (BSE). Around 12.94 lakh shares of the company were traded on the BSE, while 24.32 lakh shares changed hands on the National Stock Exchange (NSE).
The trade commission's decision may augur well for Tata Steel, which is a leading exporter of steel to the US, dealers said.
In March 2002, the US had imposed a stiff 30 per cent tariff on imports of both hot-rolled and cold-rolled steel, with a view to protect the domestic industry from large-scale imports.
The US decision sent steel prices spiraling across the globe and provided some respite to the beleaguered domestic steel manufactures, who had been hit hard by the slump in global steel prices.
Local steel prices also surged with the increase in global steel prices. Analysts expect a sharp surge in Tata Steel's FY 2002-03 net profit on the back of the rising steel prices.
The US steel industry has been asking for increasing protection from imports and has been demanding steep anti-dumping duties on cold-rolled steel imported from countries like Australia, Sweden, Japan, Thailand and India.
However, with a 4-1 vote Tuesday, the commission found the five countries not guilty of selling cold-rolled steel products far below fair-market value, or the cost of production.
