US President Donald Trump, on Friday, announced he would hike existing tariffs, applied to about $250 billion in Chinese goods, to 30 per cent from 25 per cent as of October 1. He also said a new round of tariffs on $300 billion in goods will be taxed at 15 per cent, up from 10 per cent.
Further, MSCI Hong Kong cut to underweight from overweight on concern that ongoing political tensions in Hong Kong will affect the city’s economy and corporate earnings, a Bloomberg report said citing a research note from Nomura.
Meanwhile, between April and July 2019-20 (FY20), domestic demand growth for steel was at 5.7 per cent year-on-year (YoY), much lower than FY19 growth of 7.5 per cent.
"This steel demand growth print now reflects contraction in end-user sectors like automobile sales and slowdown in infrastructure spending, as highlighted by steel companies’ commentary. Given the seasonal weakness in demand during the monsoon and subdued global steel prices, domestic flat steel prices have declined by a significant Rs 2,000-2,500/tn (or 5-6 per cent) since the start of July’19 and a more steep Rs 2,750-3,000/tn (6-7 per cent) in the case of rebar prices," analysts at SBICAP Securities said in metal and mining sector report for the month of July.