On March 18, Tata Steel’s stock surged by nearly 5 percent amidst substantial trading activity and numerous significant transactions, propelled by the vigorous growth in China’s industrial output. By 12:20 pm, Tata Steel’s stock was trading at Rs 148.6, marking a 4.9 percent increase from the previous day’s close.
The trading volume for Tata Steel reached almost 10 crore shares on this day, which is more than double the average volume observed last month. Notably, approximately 2.3 crore shares were exchanged in large transactions. Over the past year, Tata Steel’s share price has experienced an impressive gain of nearly 40 percent.
Following China’s robust industrial output growth of 7 percent in the January-February period, exceeding Bloomberg’s estimate of 5.2 percent, other metal stocks also saw gains. The Nifty Metal index climbed by 0.3 percent in response to this positive momentum.
Data released on Monday revealed that China’s industrial output expanded by 7 percent year-on-year during the January-February period, surpassing the 6.8 percent growth observed in December. Analysts had anticipated a more modest 5 percent increase, making this acceleration particularly notable.
As steel imports hit a six-year high in the first 10 months of the financial year, primarily due to Chinese shipments, the industry braces for potential import restrictions. Reuters, citing provisional government data from March 2, highlighted India’s status as a net importer of finished steel. This surge in steel demand was underpinned by India’s resilient construction and automotive sectors, positioning the country as a global bright spot.
China, the world’s largest steel producer, shipped 1.75 million metric tons of finished steel to India during this period, marking an 80 percent increase from the previous year and reaching a six-year peak.
In response to this trend, India took action in September by imposing a five-year anti-dumping duty on specific types of Chinese steel. Such duties are levied by governments to counter imports deemed to be priced below fair market value.
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