Tuesday 26 February 2013

Budget expectations - Metals & Mining Sector


Expectations -
1. Reduction of export Duty on Iron Ore from the current 30% to 15-20%
2. Import Duty on sponge Iron from 0% to 5-10%
3. Removal of steel products from the ambit of Free Trade Agreement (FTA)
4. Increase in Import duty on manganese ore from the current 2% to 5%
5.Import Duty exemption on Thermal Coal
6. Rise in basic Customs duty on stainless steel flat products from 5% to 15%.
7.Increase in custom duty on copper or reduction in customs duty on copper concentrates
8. Increase in customs duty on aluminium products

IMPACT
1. Positive for Iron Ore exporters like Sesa Goa and NMDC.
2. Positive for all sponge iron manufacturing companies like Monnet Ispat, JSPL, Tata Sponge, etc.
3.Positive for all steel manufacturing companies.
4. Positive for manganese ore producers such as MOIL and Adhunik Metaliks.
5. Positive for all coal importing steel companies like Tata Steel, JSW Steel, JSPL, SAIL, Bhushan Steel.
6. Positive for stainless steel producers like Jindal Stainless.
7. Positive for all domestic copper smelters like Hindalco and Sterlite Industries.
8. Positive for all domestic aluminium manufacturing companies like NALCO.

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