Thursday, July 10, 2014

Budget 2014: Several positives for metal and mining sector
Photo: DNA India
10 Jul, 2014: The budget had several positives for the metals and mining companies. There is an increase in the export duty on bauxite from 10 per cent to 20 per cent, which is a big positive for the aluminium manufacturing companies which depend heavily on domestic bauxite supply.

Hike in export duty will constraint bauxite exports and improve raw material availability for these companies.

Also the customs duty on imported flat-rolled products of stainless steel is hiked from 5 per cent to 7.5 per cent which is a positive for steel manufacturing companies which are facing severe competition from the Chinese, Japanese and Korean steel manufacturers that were dumping their inventory in the Indian market.

Hike in custom duty will constraint this, thus benefitting local flat steel producers.

Top Picks : NALCO, Jindal Steel, SAIL

Courtesy: The Economic Times
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