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Time of India
21 hours ago
- Business
- Time of India
New steel tariffs mixed bag for Indian companies making in US
Mumbai: While the US government's decision to double tariffs on steel and aluminium has led to renewed uncertainty, it is likely to be a mixed bag for domestic companies with a manufacturing presence in the US. The Donald Trump-led US government is set to double tariffs on the import of steel and aluminium to 50% from Wednesday. International media reports suggest that the move is aimed to protect workers in the US as the proposed takeover of US Steel by Nippon Steel could receive an approval soon. While most of the steel produced in India is consumed locally, higher tariffs in the US may lead to steel being dumped in other regions, including India, which could impact prices in the domestic market. JSW Steel , which has a steel manufacturing facility in Ohio in the US, saw its earnings before interest, tax, depreciation and amortization (EBITDA) loss narrow sequentially in the March quarter helped by an improvement in sales realisations. At its Plate and Pipe Mill in Texas, the company's EBITDA rose quarter-on-quarter, also helped by higher realisations. Both units also saw an improvement in their capacity utilisations in the March quarter compared to the December quarter, and the management was confident of the performance improving further. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký "Volumes have picked up, the prices have improved, and we do expect that going into this year, we should see positive contributions from overseas, especially US," Swayam Saurabh, chief financial officer of JSW Steel, said on a call to analysts recently. The Ohio unit produced 810,000 tonnes of steel in fiscal 2025, accounting for around 3% of the total crude steel produced by the company. "The company will see a positive impact, but it will be very marginal, so not significant in the larger scheme of things," said an analyst, not wishing to be identified. The other company which could potentially benefit from these tariffs is Hindalco Industries , which has a US-based subsidiary Novelis, and manufacturing units in the region. Live Events While Novelis did see an improvement in its net income and adjusted EBITDA per tonne on a sequential basis in the March quarter, analysts said the company's guidance has seen a marginal shift. While the management indicated that they were confident of getting exemption on the import duties in February, in May, Novelis' CEO Steve Fisher said a 'neutral to positive' impact was expected considering certain trade deals between countries were bound to happen. "We think that there will be a USMCA 2.0," he told analysts in May. "As soon as we have some of those (deals), particularly the USMCA 2.0, we will be going in that direction. So, you have to take this negative impact as something for the time being," he said. The USMCA is a free trade agreement that came into effect in 2020 between the US, Mexico and Canada. After Trump came to power in January this year, steel and aluminium were one of the earliest to be subjected to tariffs. "This is more of a sentiment thing because, if you see, there was not much of an impact even the last time, as steel safeguard duties helped offset the impact," another analyst said. On Monday, shares of Hindalco Industries , Jindal Steel and Power, Vedanta, Tata Steel and JSW Steel ended up 0.4-1.5% lower on the NSE while the Nifty 50 ended 0.1% lower.
Business Upturn
2 days ago
- Business
- Business Upturn
Hindalco and Tata Steel shares in focus as Trump doubles import tariffs on steel and aluminium to 50%
By Aman Shukla Published on June 1, 2025, 11:18 IST Shares of Indian metal majors like Hindalco and Tata Steel may remain in focus on Monday after US President Donald Trump announced a steep hike in import tariffs on steel and aluminium. The tariffs, which will rise from 25% to 50%, are set to take effect from Wednesday, June 4. The announcement was made during a rally at a steel plant in West Mifflin, Pennsylvania, where Trump emphasized the need to protect and further strengthen the U.S. steel industry. 'Nobody's going to get around that,' he said. Later, in a social media post, he claimed the increase would provide a 'BIG jolt of great news' for American metalworkers. Impact on Indian Companies Steel India's direct steel exports to the US are limited. However, Tata Steel Netherlands exports approximately 700,000 tons of steel to the US annually. Some of this steel is not manufactured in the US, and may be affected by the new tariff rules unless exempted. Aluminium Hindalco's subsidiary Novelis is one of the largest aluminium recyclers and producers in the US. The tariff hike could increase the Midwest premium — which might benefit domestic producers. However, Novelis imports some of its raw material from Canada, and the cost impact depends on whether Canada receives a tariff exemption. At the 25% tariff level, Novelis had earlier indicated a potential $40 million quarterly hit, expected to start in Q1 FY26. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
India Today
3 days ago
- Business
- India Today
India may escape impact of US steel tariff hike, but global fallout looms
In a move aimed at shielding American manufacturers, US President Donald Trump has announced that tariffs on imported steel and aluminium will double to 50 per cent, beginning June 4. The announcement came during a speech at a US Steel plant in Pennsylvania, where Trump declared, "We're going to bring it from 25 per cent to 50 per cent, the tariffs on steel to the US." He later confirmed via social media that aluminium would face a similar protectionist push underscored his commitment to reviving American industry. However, while the direct trade exposure of countries like India remains limited, economists and analysts are sounding alarms over the broader global however, has moved to retaliate against the US metal tariffs by filing a notice at the World Trade Organisation even as the two countries work to finalise a broader trade DIRECT IMPACT ON INDIA'S METAL EXPORTS For India, the immediate economic fallout from Trump's steel tariffs announcement appears relatively muted. In 2024, the US imported approximately 28 million tonnes of steel, though net imports were significantly lower due to domestic exports account for only a small fraction of these volumes, with Canada and Brazil leading the list of US US aluminium imports, estimated at 5.4 million tonnes last year, were heavily concentrated from Canada, which supplied around 50 per cent. India's share remains the tariff hike could alter supply chains globally, with potential spillover effects that reach beyond direct trade UPSIDE AND RISKS FOR INDIAN COMPANIESLarge Indian metal producers like Hindalco may not see immediate damage. In fact, rising US Midwest aluminium premiums could offer some benefit to the company. However, the situation is sources some of its aluminium raw material from Canada, and if Canadian imports do not receive exemptions, input costs could rise, cutting into profit concerning is the impact on Hindalco's US-based subsidiary, Novelis, which could see a significant earnings hit. Novelis has already projected a USD 40 million reduction in quarterly EBITDA (earnings before interest, taxes, depreciation and amortisation) starting FY26 due to the existing 25 per cent tariff. With the new rate doubling to 50 per cent, losses could widen unless exemptions or policy adjustments EFFECTS: A GLOBAL TRADE SHAKE-UPEven if India avoids direct commercial harm, the indirect consequences are hard to ignore. Analysts warn that global trade sentiment could weaken, and protectionist moves may dampen overall economic major metal exporters like the European Union, China and Brazil - now facing higher barriers to the US market - alternative markets such as India could become dumping is already battling with global steel overcapacity and has imposed anti-dumping duties on products from China, Vietnam, South Korea and Thailand. However, a fresh wave of cheap imports could further strain domestic prices and compress producer SENTIMENT MAY WEIGH HEAVIER THAN TRADE DATAWhile India may avoid immediate disruption, the broader consequences of Trump's tariff hike extend well beyond simple trade global suppliers seek new buyers and protectionist trends deepen, India could find itself grappling with downward pressure on commodity prices, rising input costs and renewed trade friction - factors that bear close watching in the months Watch IN THIS STORY#United States of America#Donald Trump
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Business Standard
21-05-2025
- Business
- Business Standard
Despite short-term concerns, brokerages remain bullish on Hindalco
Upstream aluminium revenue stood at Rs 10,300 crore in Q4FY25 (up 22 per cent YoY), led by higher aluminium prices Devangshu Datta Listen to This Article Hindalco's India business, including Utkal Alumina, reported good results for the January-March quarter of the financial year 2024-25 (FY25) and consolidated earnings before interest, taxes, depreciation, and amortisation (Ebitda) also rose. Earnings growth was driven by favourable pricing, lower input costs and lower tax outgo for Novelis. The company's US-based aluminium rolling and recycling subsidiary, Novelis' performance rebounded in Q4. Copper Ebitda dropped 21 per cent quarter-on-quarter (Q-o-Q). Aluminium profitability is likely to decrease Q-o-Q in Q1FY26 due to lower aluminium prices. Novelis may be affected by the US tariffs. Consolidated net sales were ₹64,900 crore, up 16 per cent
Mint
21-05-2025
- Business
- Mint
Hindalco share price: Should you Buy, Hold or Sell post Q4 Results, Dividend announcement
Stock Market Today: Hindalco share price was trading rangebound and almost flat in the morning trades on Wednesday post Q4 Results, dividend declared by the company on Tuesday. Should you Buy Hold or Sell the stock ? Here is what analysts say- Hindalco Industries announced on Tuesday that its consolidated net profit for the March quarter increased by 66% to ₹ 5,283 crore from Rs3,174 crore during the same period last year. Revenues from Operations in Q4FY25 stood at ₹ 64,890 crore, which was about 16% higher than the ₹ 55,994 crore recorded in the same quarter of the previous fiscal year. The Upstream operations in the Aluminium Business lifted the show. In comparison to the same quarter previous year, the fourth quarter's consolidated EBITDA or earnings before interest tax depreciation and amortisation increased by 43% to ₹ 10,296 crore. Analysts while stay positive on domestic Aluminum business (both upstream and downstream), however are watchful on its US subsidiary, Novelis performance in the back of Trump Tariff announcements YES Securities post Q4 Results said that the downstream capacities are ramping up but near-term headwinds persist for Novelis, leading them to, assign NEUTRAL Ratings. Hindalco delivered a strong Q4FY25 performance, surpassing consensus expectations, which as per Yes Securities was driven by firm aluminium and copper prices, a supportive macro environment, and a largely stable cost structure on a sequential basis. With the upstream Aluminium Segment posting a strong EBITDA/tonne of $1,684, up from $1,480 in Q3FY25 and much higher than $967 in Q4FY24, the Indian aluminum Business for Hindalco continues to reach new operational milestones. Sequential improvement was also seen in the downstream aluminum business, where EBITDA/tonne increased from $179 in the prior quarter to $240. They value Hindalco on a SOTP basis to arrive at revised target price of ₹ 721/share. Motilal Oswal Financial Services exects a healthy consolidated performance for FY26 or 27, mainly driven by the strong domestic operations. They thereby have increased their Earnings before interest tax depreciation and amortisation or EBITDA estimates for FY26 and FY27 by 3% and 2% respectively. The stock as per MOFSL trades at 5 times Enterprise Value by Ebitda and 1.2 times Price to Book value on FY27 estimates. They reiterate their BUY rating on Hindalco with a revised SoTP-based TP of ₹ 790. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
