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Informist, Friday, Jun 27, 2025

MUMBAI - Shares of Indian steel companies are expected to see some near-term weaknesses due to the pressure on steel prices amid subdued demand and seasonal headwinds. Steel prices are expected to remain under pressure in the coming months, too, and there are some concern about possible cheaper imports from China which has been a worry for Indian steel players, an analyst tracking the metal sector at a domestic broking firm said. However, there are no major concern with respect to steel companies' valuations, the analyst added. 

India had imposed a 12% safeguard duty on imports, applicable for 200 days with effect from Apr. 21 to protect domestic players from cheaper Chinese products. The move came after the US announced first wave of tariffs on its key trading partners such as Canada, Mexico, and China, which had then raised worries that surplus Chinese steel will come to other markets, including India. 

In Apr-Nov, India's steel imports from China had reached an all-time high of 1.96 million tonnes, up almost 23% on year, as per the government data. China was the world's largest crude steel producer in 2024, followed by India, Japan, and the US, as per provisional data from the World Steel Association. 

Investors will continue to monitor the updates with respect to US tariffs next week. The deadline for the 90-day pause in US tariff, which was implemented in April, ends next week. However, there are hopes that the US would extend the deadline. "Perhaps it (deadline) could be extended, but that's a decision for the president to make," White House spokesperson Karoline Leavitt had said Thursday. 

Kotak Institutional Equities believe that steel prices will likely remain subdued in the coming months. This would be due to the early onset of monsoon which curtailed construction activities, elevated inventory levels, a tepid export market, and price competition in the global seaborne market which continues to exert pressure on domestic prices, the broking firm had said in its report Tuesday. 

This week, all major metal stocks closed in the green, with Hindustan Copper gaining the most in the pack, up over 11%, followed by Hindalco Industries which rose more than 7%. With the June quarter earnings season starting next month, investors will closely watch for trends in the metal sector and experts' comments on business outlook. 

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Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:

End

Reported by Anjana Therese Antony
Edited by Akul Nishant Akhoury

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