Steel & Cements stock

Bullet · #1 23rd January 2007, 06:25 PM

Duty on steel, cement:
[ 23 Jan, 2007 ]

DELHI: In order to check the rising inflation, government on Monday decided to reduce the import duty on items like stainless steel, cement, aluminium, zinc, copper, specified capital goods and project import.

The decision has been taken just five to six weeks ahead of Budget. The finance ministry said to reduce cost of manufacturing, and infrastructure development, government has decided to reduce customs duty on cement, various raw materials and capital goods.

The import duty on Portland cements reduced from 12.5% to Nil. This will force the domestic cement manufacturers also to reduce the price to match the imported price. Similarly, the import duty on stainless steel and other alloy steel is brought down to 5% from 7.5%.

Duty on primary and semi-finished forms of Copper, Aluminium, Zinc, Tin and other base metals has been reduced to 5% from 7.5%. Duty on specified capital goods and their parts, and winding wires has been reduced to 7.5% from 12.5% and 10%. Duty on the import of projects has been brought down to 7.5% from 12.5% and 10%.
Import duties on airport development and metro rail projects has been cut to 7.5%.

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Keep a watch on STEEL & CEMENT STOCKS...

manish_sat · #2 23rd January 2007, 07:12 PM

plz guide us when we buy India Cement, Gujarat ambuja cement...etc ...
today they went down...is there any chances for down further.

Bullet · #3 23rd January 2007, 07:28 PM

Cement shares including Guj. Ambuja Cements have been hit because of lifting of customs duty on ordinary portland cement.
Defer your BUY in Gujarat Ambuja Cements for now.

judemit · #4 24th January 2007, 12:41 AM

Hi Guys,
Is this measure is the temperary solution or a permanent solution. What is the impact of this customs duty reduction on the cement industry?

Thanks,
Jude

kkseal · #5 24th January 2007, 05:37 AM

Quote:

Originally Posted by judemit

Hi Guys,
Is this measure is the temperary solution or a permanent solution. What is the impact of this customs duty reduction on the cement industry?

Thanks,
Jude

Nothing, as of now but if international cement prices come down by as little as a $ per bag, they will have to cut prices. This could be the beginning of the end of the bull run in cement stks.
Impact on Steel will be more immediate. (Will likely go the sugar way).

judemit · #6 24th January 2007, 06:16 PM

Thanks for the update

Rajendra Bhagat · #7 24th January 2007, 08:13 PM

hello,
i have just entered in your kingdom.feeling very nice.i m very new in this field.
thank u
rajendra bhagat

kkseal · #8 24th January 2007, 10:07 PM

Hi,

Some news on the duty front.

The govt is likely to allow state govts to impose 4% duty (VAT) on imports as part of the compensation for CST which will be phased out. This is good news for domestic manufacturers.

Also the tax waiver is only for Portland cement which constitutes only 32% of the domestic produce. it is also unlikely that a primary commodity like cement will remain totally duty free forever. This is more of a knee-jerk reaction of the govt to the spiralling inflation.

Regards,
Kalyan.

munit_si · #9 26th January 2007, 07:47 PM

How about alumininum sector ? will duty be waived off in this sector also.

I am following up hindalco , and waiting for it to go up from a long time.

Thanks
Munit

ninadbam · #10 29th January 2007, 10:19 PM

any suggestion about essar steel refering to the news of delisting

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