Metals

Increased infrastructure spending should lead to higher demand for long-steel products. Companies, which have a higher proportion of long products in total sales, such as SAIL, JSW Steel and Tata Steel could benefit. The industry is expecting import duty on steel and aluminium to be doubled to 10 per cent, which will protect domestic steel manufacturers against cheap imports from China (China gives 9 per cent rebate on export of HRC) and CIS countries.

Such a move will also help non ferrous players like Nalco, Hindalco and Sterlite Industries. Expectations of a hike in export duty on iron ore to control domestic prices and improve raw material availability for steel makers are also there.

While such a move would be negative for Sesa Goa, it would be positive for companies like JSW Steel which do not have captive iron ore mines. Any move to deregulate coal mining will not only improve coal availability, but also help companies in improving their profitability and give them comfort to enhance capacities.