Steel Sector Check - Price Headwinds Persist: ICICI Securities
Going ahead, we perceive the rise in Covid cases in China as biggest threat to steel demand, which might keep global prices low.
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ICICI Securities Report
Hot rolled coil price in traders’ market remained broadly unchanged compared to last week as domestic prices remain at ~12% premium to landed price of imports.
In longs, post knee-jerk reaction of 10-12% price increase in products across the direct reduced iron-IF value chain on roll-back of export duty, we saw some retracement. That said, we still perceive longs to be placed better than flats due to resumption of pellet exports and demand from infrastructure generally picking up in the second half of the year.
Regional prices were unchanged except China- down $20/tonne week-on-week. Going ahead, we perceive the rise in Covid cases in China as the biggest threat to steel demand, which might keep global prices low.
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