Steel stocks rally as govt extends MIP on 66 steel products

Shares of steel stocks rallied on government  boosters as minimum import price (MIP) on 66 steel products is extended by another two months to protect the industry against cheap imports. The 66 products include semi-finished products of iron or non-alloyed steel, flat rolled products of different widths, bars and rods. Stocks like Hindustan Zinc, Hindalco, Jindal Steel, JSW Steel and Tata Steel gained over 1 percent from previous close.In August this year, the Directorate General of Foreign Trade (DGFT) had extended MIP on the same products of iron and steel till October 4. MIP had first come into place in February this year on 173 steel products in range of USD 341-752. India’s steel industry has been suffering not only due to cheap imports from countries like China, Japan and Korea, but also due to the recent fall in steel prices globally. The top steel companies had reached out to the government early this year to impose MIP on imports to safeguard the domestic industry against imports.(With inputs from PTI)