Metal Stocks Outlook for the week – 14 to 18.12.2015
(Up
next week, anti-dumping duty on steel to aid)
The
anti-dumping duty imposed by the government on the import of cold-rolled
flat
products of stainless steel, especially on Chinese products, is seen having a
positive
impact on shares of major metal producers and mining companies next
week.
The
government today imposed a hefty 57.39% duty on the cold-rolled roducts
imported
from China to support domestic steelmakers. It also imposed the levy
at
the rate of 4.58-36.91% on the same imports from the European
Union,
South Korea, Thailand, Chinese Taipei, and South Africa.
Although
the imposed duty on cold-rolled products will benefit the sector, the
margins
are not expected to grow substantially. Due to the anti-dumping duty,
the
metal companies will now not have to cut their prices and will, therefore, be
able
to survive in the market.
The
anti-dumping duty will support the sector, but the domestic demand is
seen
remaining weak. The imposition of anti-dumping duty and likely
minimum
import price by the government is expected to provide support to the
sector,
but the imposition should be done across the range of products.
Shares
of most metal companies ended weak today as the governments
Announcement on the anti-dumping duty came after the market hours.