Metals Sector Check - Steel Prices Stay Firm; Positive Demand Sentiment: ICICI Securities
We retain positive outlook on ferrous space with Jindal Steel and Power and Tata Steel being our key picks.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Hot rolled coil price in traders’ market rose for 11th week in a row to nearly Rs 58,000/tonne- the highest level since May 2023. Longs price in primary market rose further by Rs 500-600/tonne.
Our channel checks indicate demand has picked up steadily since August 2023, particularly in construction and infrastructure segments.
Furthermore, the delay in renewal of BIS licenses to companies especially from China and Vietnam imply that steel import volume- particularly for downstream products is likely to come off compared to H1 FY24.
In China, positive demand sentiment amidst production curbs prompts Baosteel to raise flat products’ prices by CNY 50-100/tonne for October 2023.
We retain positive outlook on ferrous space with Jindal Steel and Power Ltd. ('Buy'; target price: Rs 810) and Tata Steel Ltd. ('Add'; target price: Rs 150) being our key picks.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.