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Govt. Launches Investigation into Rising Import of Steel: Its Time to See Some Real Action on Ground

News: 

The government has launched an investigation into increasing imports of steel, with initial findings suggesting that the higher volumes threaten to cause "serious injury" to domestic steel producers.

Source: ET

SNP Insight:

The interim findings of investigations by the government highlight the need of imposing safegaurd duty to check rising imports of steel. The decison on imposing duty on Hot Rolling Coils from China, Japan, Korea  and Russia needs to be implemented on a priority basis. It might actually help in stablising the steel prices and overcome weakness prevailing due to poor demand and higher supply. However, the move can be termed as a short term measure to help the domestic players. The other marring factors like lowered demand from real estate sector particulary housing sector needs to be addressed as well.

Source: SNP Infra Research