ICICI Securities says the Indian government's recent anti-dumping investigation against Vietnam HRC steel imports might aid companies such as Tata Steel and JSW Steel if the probe results in a pick up in domestic HRC steel prices.

What Happened: The Director General of Trade Remedies (DGTR) started an anti-dumping investigation on imports of hot rolled coil (HRC) imports of alloyed and non alloyed steel from Vietnam.

The investigation was launched after Indian Steel Association (ISA) filed a petition saying Vietnam HRC Steel products are sold at low prices and harming the domestic steel industry.

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Brokerage Views: ICICI Securities said that while the move is a positive step, the effect will be limited as China is the major exporter of Steel to India and not Vietnam. The report also says the investigation could be reciprocal as Vietnam also started an anti-dumping investigation on steel imported from India and other countries. 

The brokerage firm added that the move is a step in the right direction as domestic HRC prices have remained weak since December 2020 and the spot spread of steel is lowest since March 2024. The research firm expects the prices in traders' market to go up due to market expectation that investigation will move to other countries as well. 

The brokerage gave “buy” calls for JSW Steel and Tata Steel with target price of ₹1,140 and ₹200, respectively. 

Price Action: Shares of Tata Steel were up 3.02% to ₹154.03.

Shares of JSW Steel were up 1.19% to ₹919.25. 

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