Tag: metal stocks

The China factor: Why Tata Steel, SAIL, JSW Steel and other metal stocks settled lower in trade today

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nifty Metal dropped more than a percent in trade on Monday, February 26 as the constituent stocks of the metals sector gauge such as Tata Steel, Hindalco, JSW Steel, SAIL and Jindal Steel, among others, dropped between 1% and 3%.

State-owned SAIL dropped 2.85%, Tata Steel and Jindal Steel fell nearly 2% and JSW Steel fell 1.5%. Investor sentiment turned sour amid reports of iron ore prices dropping to a four-month low in China, and a rebound in demand post-Lunar New Year seems to be fading.

The most-traded May iron ore on China’s Dalian Commodity Exchange traded nearly 3% lower at $122.05 (878.5 yuan) per metric ton, Reuters reported. The benchmark March iron ore on the Singapore Exchange was 3.12% lower at $116.3 a ton, it added.

“Inventories of iron ore at major Chinese ports rose. Supply concerns also eased, with a cyclone threatening WA (Western Australia) ports now tracking away from the state’s iron ore hub,” Reuters quoted analysts at ANZ bank as saying in a note.

Meanwhile, China’s new home prices extended declines in January, data showed on Friday, despite Beijing’s support to restore confidence in the debt-ridden property sector.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Metal stocks gain up to 6% as China announces to cut bank reserve ratio from February

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Metal stocks gained up to 6% in Wednesday’s trade after China’s central bank announced that it will cut the reserve requirement ratio (RRR) for all banks by 50 basis points early next month.

Indian metal stocks, including Tata Steel, JSW Steel, Hindustan Copper, Steel Authority of India Ltd (SAIL), and Hindalco, were seen trading 3% to 6% higher in the closing session on Wednesday.

A positive sentiment around metal stocks prevailed in India, as China is the biggest consumer of metals in the world, and the central bank’s move would support its stock markets.

Tata Steel’s shares settled 3.69% higher at ₹ 134.90 per piece on NSE, while JSW Steel’s stock was up 2.37% at ₹809.10 apiece.

Hindustan Copper shares traded 5.47% higher at ₹272.85 per piece, SAIL was up 5.61% at ₹114.9 apiece, and Hindalco’s shares traded 4.68% higher at ₹566.75 apiece on NSE at closing.

People’s Bank of China (PBOC) Governor Pan Gongsheng said on Wednesday at a press conference in Beijing that the bank would cut the reserve requirement ratio (RRR) for all banks by 50 basis points (bps), according to a Reuters report.

It is the biggest such cut since December 2021, the report added.

The move, as announced by China’s central bank governor, Pan Gongsheng, on January 24, 2024, would lead to the government freeing up a sum of 1 trillion Yuan or $139.45 billion, to the country’s stock markets. This would provide the country a cushion given the multiple turmoils faced by China’s economy.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ratnamani Metals and Tubes plans to produce stainless steel long products in-house

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Ahmedabad-based Ratnamani Metals and Tubes, a manufacturer of seamless stainless steel and welded tubes and pipes is planing to set up an in-house stainless steel long products unit.

In an interaction with CNBC-TV18, the company’s business unit head Manoj Sanghvi said that by backward integration of stainless steel long products, the company aims to strength its position in the industry.

“At the moment, there is no decision yet, but we are working on it.” The proposed project is expected to involve a substantial capital expenditure ranging between ₹500 crore and ₹700 crore.

Until now, the company gets its stainless steel from third-party suppliers.

For the September quarter, Ratnamani Metals reported a revenue growth of 26% and Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) growth of 68% from last year. A key highlight of the quarter was the expansion in margins, which stood at over 21%, compared to the company’s 16% to 18% guiidance.

A key reason behind the margin expansion was due to the higher percentage of stainless steel tube volumes and execution of good margin orders.

Also Read | Inside Out: The three key triggers for Ratnamani Metals and Tubes

Sanghvi said that the company’s topline for the end of the current financial year is likely to range between ₹4,800 crore – ₹5,000crore. The stainles steel business contributes 30% to the overall topline.

Sanghvi also provided insights into the company’s future margin expectations, projecting a range of 16% to 18%. This guidance, while slightly lower than the margins achieved in the first half of financial year 2024, reflects considerations related to a higher contribution from the water pipe segment, which may impact overall margins.

The company’s current capacity utilization stands close to 60%, showcasing room for further expansion.

Also Read | Ratnamani Metals ends off day’s high despite two-year high EBITDA margin

Ratnamani’s current order book as of November 1 stood at ₹2,950 crore, of which 20% comes from the exports market.

As of now, Ratnamani Metals & Tubes is trading at a fresh lifetime high, having rallied by 30% so far in 2023. The stock is currently trading at a price-to-earnings multiple of 35 times financial year 2025 estimated Earnings per Share (EPS).

With a market cap of Rs 24,375 crore the company appears poised for a dynamic phase of growth and innovation in the stainless steel industry.

For more, watch the accompanying video

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Deven Choksey says metal sector is in a goldilocks scenario

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The metal sector is poised for growth, driven by various factors both domestically and globally. In India, capital infrastructure projects and government investments in infrastructure have spurred an increase in demand, particularly benefiting the automotive industry.

Deven Choksey, Managing Director of DRChoksey Finserv, highlighted the role of investments in renewable energy and the global push towards carbon neutrality, suggesting a pivotal shift in the metal commodity industry.

“The auto, which is a mainstay, is also giving a larger thrust with higher volume growth. As Maruti said doubling the size by 2030 of the market, the structural demand for steel is increasing. So, this is an opportunity,” Choksey told CNBC-TV18.

Recent data from the Federation of Automobile Dealers Associations (FADA) showcases the resurgence in the Indian automotive retail sector. Auto sales in September jumped 20% YoY. While tractor sales saw a 10% dip, all other vehicle segments, including motorcycles (22% growth), three-wheelers (49% growth), passenger vehicles (19% growth), and commercial vehicles (5% growth), recorded positive momentum.

On the global front, Choksey remarked that China’s stabilization could open up lucrative investment avenues in the metal sector.

“I am not saying that everything is going to be priced in the next couple of quarters, but the systematic demand scenario is likely to grow in this particular space. So, it’s a case for investment, given the strong demand and given the stability in the price that we are expecting,” he said.

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Metal shares shine on strong macro data, Nifty Metal hits all-time high

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Metals shares such as Nalco, SAIL, Tata Steel and NMDC rallied up to seven percent on Monday, propelling the sectoral index, Nifty Metal, to hit an all-time high in morning deals.

Out of the 15 Nifty Metal stocks nine traded at 52-week high levels on Monday amid analysts favouring metal stocks with a recovery in economic growth.

Among major gainers, National Aluminium Company Ltd rose by more than seven percent to hit a 52-week high of Rs 106.35 on NSE as 1.96 crore shares changed hands on the bourse.

NMDC rallied nearly 7 percent to touch a 52-week high of Rs 134 with 2.46 crore shares changing hands.

Steel PSU SAIL spurted over 5.6 percent to hit its 52-week high of Rs 102.55. Ratnamani Metals & Tubes Ltd also gained nearly 7 percent to hit a record high of Rs 2,775 per share in morning deals.

The country’s major private steel maker Tata Steel touched a 52-week high of Rs 132.90 per share, rising by more than 4 percent. Jindal Stainless Steel spurted around 2 percent to hit 52-week high of Rs 478.30, Apl Apollo Tubes Ltd gained more than 2 percent to touch a record Rs 1,774.70 apiece and Hindustan Copper rose more than 4 percent to hit a record high of Rs 174.75 on NSE.

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Of the total 15 Nifty Metal stocks, only Welspun was trading down by 0.38 percent after touching a high of Rs 343.95 per share.

With a strong rally in metal stocks, the Nifty Metal index hit a record high of 7,042.55 in morning deals. In the past week, the index posted gains on four of five sessions, rising by around seven percent on a weekly basis.

A recovery in economic growth, backed by growth in infrastructure and auto industries, has also boosted the demand for metal shares. According to official data released last month, the economic growth was 7.8 percent in the April-June quarter, which was the highest in past quarters. Also easing concerns over commodity prices have also boosted demand for metal shares.

Metal prices are also moving higher on hopes of stimulus in China, and hope of Chinese exports cooling in the second half of 2023. China’s efforts to bolster its economy could result in increased demand.

Among other factors supporting the metals are hike in India primary long steel mills rebar prices by Rs 1,500/tn, fourth since early August. The cumulative hike has been to the tune of Rs 3,500-3700/tn in August due to strong pre-election demand, lack of rain and increasing prices of iron ore and cooking coal.

Catch the latest market updates with CNBC-TV18.com’s blog 

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Metal stocks gain momentum, Adani Enterprise and JSW Steel gain over 3%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A favourable risk-return ratio has led to metal stocks gaining preference among investors. The metal sectoral index rose 1.4 percent on the day when the Nifty 50 breached an all-time high of 19,000. Nifty Metals is the only index along with Nifty Pharma that gained over 1 percent until 2:30 pm on June 28.

Evelven out of 15 stocks traded from the Nifty Metal index rose, with Adani Enterprise and JSW Steel gaining over 3 percent intraday.

The Nifty Metals index has rallied 3 percent to date in June and 31 percent in the past year. Analysts attribute the momentum in metal stocks to favourable valuations and attractive risk-return ratios.

A sustained steel demand can support current pricing levels for steel. One of India’s largest steel makers, Jindal Steel and Power says hot-rolled coil (HRC) prices are nearly bottomed out and expects to remain range-bound in the near future. Also, major steelmakers in India do not have any plans for production cuts but may opt for annual maintenance shutdown during monsoon.

The consensus estimates for the steel sector for FY24 have been stable in June so far. Priyankar Biswas, metals analyst at Nomura, expects steel price fall to be arrested. India HRC export prices remained stable at $565/t in the past two weeks and are now at the lowest levels since mid-December 2022, stated a recent report by Nomura.

Other metals like aluminium and zinc have seen a softening in price, as opposed to lead and copper, amidst recession concerns in the West, a marginally weaker dollar index and lesser than anticipated domestic growth in China. China’s manufacturing PMI at 48.8 in May 2023 fell marginally month on month from 49.2 in April 2023, indicating less-than-anticipated domestic demand within China.

As per the International Lead and Zinc Study Group, the global refined zinc metal market was in a deficit of 164 KT in CY22, while the refined zinc market for the calendar year 2023 is estimated to be in a deficit of about 40 to 45 KT.

Antique stock broking expects aluminium prices to be supported by restricted supply, lower inventory levels, and the global cost curve. In the case of non-ferrous companies, lower costs (thermal coal, caustic soda and crude derivatives have softened) and steady demand will continue.

The brokerage assigned a ‘buy’ rating on Hindalco with a target price of Rs 534, NALCO with a target price of Rs 99, Vedanta with a target price of Rs 344, and ‘hold’ on Hindustan Zinc with a target price of Rs 317.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Steel on a good footing with strong domestic growth story and capacity expansion underway

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Steel is planning a significant capex to augment its Indian capacity to 40mt from 21mt by FY30. This is owing to a robust steel demand across key sectors, such as construction, infrastructure, automobiles, railways and white goods. The backward integrated player remains buoyant about domestic steel demand over the next decade.

In the fourth quarter of FY23, Tata Steel reported an 84 percent year-on-year decline in consolidated net profit at Rs 1,566 crore due to falling demand in Europe and weak steel prices. The total revenue at Rs 62,961 crore was higher than the CNBC-TV18 poll of Rs 58,962 crore. Although, full year performance was affected by lower steel demand in second half, rising interest rates, elevated input costs and geopolitical volatility.

The company is increasing its downstream capacity across tubes (1mt to 4mt), wires (0.45mt to 1mt), tinplate (0.38mt to 1mt), and DI (0.2mt to 1mt). Motilal Oswal says Tata Steel’s focus on product enrichment will help the company to augment its portfolio of value-added products. The brokerage has a Neutral rating on the stock with a target price of Rs 110. The current market price is Rs 113.

The company in its FY23 annual report states that is on track to double the domestic capacity by FY30. It also plans to increase the share of long steel products to 33 percent from 23 percent in the same period. Tata Steel has already commissioned the first circuit of 6mt pellet plant, pickling line and tandem cold mill line of 2.2mt cold olling mill complex in FY23, in an attempt to enhance its product mix and drive cost savings.

Furthermore, in the ongoing financial year, Tata Steel is expected to incur a capex of Rs 16,000 crore, including Rs 7,000 crore for the Kalinganagar expansion, which will increase its existing capacity to 8mt by FY25-26 from 3mt.

A robust domestic demand augurs well for the steel maker. Being a preferred supplier to the Indian automotive sector, Tata Steel’s dispatches to the auto sector grew 7 percent in FY23. An overall growth in steel demand is expected to mimic the GDP growth rate.

Tata Steel has a strong presence in the UK, however, the operations have been  a drag, with dispatches declining by 0.47mt to 3.02mt in FY23. Some of the heavy upstream assets are facing ageing issues and are approaching the end of their useful lives in the next 12- 24 months.

Post amalgamation, Tata Steel to be a steel behemoth

The ongoing amalgamation process of seven of its subsidiaries and one associate company into Tata Steel is expected to be concluded by the end of FY24. Tata Steel is merging four of its listed entities, namely Tata Steel Long Products Ltd, Tinplate Company of India Ltd, Tata Metaliks Ltd and TRF Ltd in the swap ratio of 6.7, 3.3, 7.9 and 1.7 for every 1 share of TATA, respectively.

The amalgamation will enable it to achieve higher synergies, drive significant
cost savings, undertake focused growth capex, increase market presence across product lines, and consolidate market share under a single unified brand, says Motilal Oswal in a report.

“The Company has made substantial progress in its simplification journey and is working on the amalgamation of seven subsidiaries and one associate company into and with Tata Steel” N. Chandrasekaran, Chairman of Tata Sons message from Tata Steel annual report.

Positive outlook 

EBITDA margins were affected by a slowdown in the steel sector, especially in
second half of FY23. However, as the share of value added products increase and as the new facility comes on stream, margins are expected to improve further.

Also, Tata Steel is successful in reducing the debt by Rs 3,700 crore in fourth quarter of FY23 through working capital release. It expects debt to reduce further through inventory liquidation. Net debt/EBITDA currently is below the long term average of 2.6 times. It expects to resume its deleveraging exercise and targets to reduce the debt by $1 billion in FY24.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Metal stocks climb over 4% as China makes surprise rate cut to support recovery

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Equity benchmark index Nifty advanced for the third consecutive day led by metal stocks, which have been shining in Wednesday’s trade, following China’s central bank’s surprise move to cut its short-term policy interest rate. The rate cut in China was in a bid to shore up sputtering growth in the world’s second largest economy. Shares of metal companies such as Tata Steel, JSW Steel were among the top gainers in the Nifty pack.

The Nifty Metal index has outperformed benchmark Nifty50 in the last one year, with both rising 23 percent and 19 percent, respectively. The Nifty Metal index rose nearly 2 percent in trade today. Of the 15 constituents in the index, all were trading in the green except for Hindustan Zinc, which was down 0.56 percent.

Shares of Apl Apollo Tubes, which was leading the Nifty Metal index, gained more than 4 percent on the NSE today. The stock rose 13 percent in the last five trading sessions. JSW Steel, meanwhile, surged 3 percent to hit an intra-day high of Rs 779 level.

Shares of Jindal Stainless was up 1.84 percent, Tata Steel up 1.71 percent, Hindalco up 0.84 percent, Vedanta up 1.03 percent, SAIL up 0.48 percent and Jindal Steel was up 0.60 percent.

China rate cut

The People’s Bank of China, on Tuesday, lowered the seven-day reverse repurchase rate by 10 basis points to 1.9 percent, the first reduction in the rate since August last year. That increases the likelihood the central bank will reduce its one-year loan rate on Thursday, with banks expected to lower their lending rates shortly after.

A repurchase agreement (repo) is a type of short-term borrowing rate.

Tuesday’s move underlines heightened concern about a slowdown in growth: recent economic indicators showed inflation remained near zero in May, manufacturing activity contracted and an early rebound in the property market has fizzled. Speculation is growing that the PBOC may cut interest rates even further this year, while Beijing is considering a broad package of stimulus measures.

“Policymakers are finally acknowledging the economic weakness,” Michelle Lam, Greater China economist at Societe Generale SA was quoted as saying by Bloomberg. “There should be more interest rate and reserve requirement ratio cuts in the second half of 2023.”

Analysts on metal stocks

Meanwhile, analysts at ICICI Securities in a recent research report said: “While we maintain our positive outlook on the Indian ferrous space led by higher spot spreads, rise in Chinese export prices (if sustained) could come as a shot in the arm. Maintain buy on JSPL (target price: Rs 750) and Shyam Metalics (target price: Rs 570), add on Tata Steel (target price: Rs 125) and SAIL (target price: Rs 92).”

Here are the metal stocks to buy, sell, add as recommended by the brokerage —

Jindal Steel (BUY)

Jindal Stainless (BUY)

SMEL (BUY)

APL Apollo (BUY)

NMDC (ADD)

Tata Steel (ADD)

SAIL (ADD)

JSW Steel (HOLD)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nifty Metal index rises 3% with Adani Enterprises shining brightest — what should you do

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Metal stocks have been shining since last week, with the Nifty Metal index rising more than 3 percent, or 179.45 points, in intraday trade on Monday, May 22, to close at Rs 5,797.50 levels. At closing, of the 15 constituents of the Nifty Metal Index, all ended in the green except for SAIL, NMDC, and Ratnamani Metals & Tubes, which were down nearly 1 percent.

In the last one year, the Nifty Metal index has jumped 10.61 percent while the benchmark Nifty50 has risen 12.95 percent. Among all the index constituents, Adani Enterprises was the biggest gainer, rising 17 percent to Rs 2,289.65 after the Supreme Court-appointed expert committee’s report that it cannot conclude any regulatory failure around the Adani Group-Hindenburg case. SEBI has “drawn a blank” in its investigation into alleged violations in money flows from offshore entities into the conglomerate.

ALSO READ: JSW Steel will continue to look at NMDC Steel as an asset only until…

Other major gainers in the metal space included Jindal Steel and Power, JSW Steel and Tata Steel, gaining up to 30 percent in the last one year.

“Nifty opened on a flat but gradually recovered to close with gains of 111 points ( plus 0.6 percent) at 18,314 levels. The broader market too ended in line, with the Nifty Midcap 100 and Smallcap 100 up 0.6 percent. All sectors ended in the green, except for banking and financials. Metals were the top gainers, up 3 percent, followed by IT up 2 percent,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal.

In terms of technicals, Nifty Metal has a strong resistance near 5,922 levels from its current market levels. If it closes above 5,922, then further buying is possible, said Vaibhav Kaushik, Research Analyst, GCL Broking.

Steel: Chinese export price weakness weighs

Spot hot rolled coil (HRC) price in traders’ market declined by Rs 500 per tonne on average due to heightened pressure of imports and sustained weakness in Chinese export prices.

Spot spreads also contracted Rs 600 per tonne on an average as raw material prices remained unchanged. Longs prices in the primary market corrected by another Rs 800 per tonne — however, in secondary market, prices rose by Rs 500 per tonne on tightness in the pellet market. HRC prices in the export market, however, corrected further, tracking lower Chinese prices — down $30 per tonne (5 percent) week-over-week.

In China, as per People’s Bank of China, the economic growth is expected to be better in the second half of calendar year 2023, partially due to investment in infrastructure projects. On the production front, April 2023 crude steel production has declined 1.5 percent year-on-year, hence, analysts at ICICI Securities might see some respite in exports in  the second half of CY23.

“While we maintain our positive outlook on ferrous space led by robust spot spreads, we would keep a close tab on market balance in China,” the brokerage said.

Metal stocks to buy, sell, add as recommended by brokerages:

• Jindal Steel (BUY)
• Jindal Stainless (BUY)
• SMEL (BUY)
• APL Apollo (BUY)
• NMDC (ADD)
• Tata Steel (ADD)
• SAIL (REDUCE)
• JSW Steel (HOLD)

Meanwhile, JSW Steel MD and CEO Jayant Acharya said steel prices have held steady for the month of February-March, post which there has been some correction in the international markets, driven by subdued sentiment in China, higher exports from China.

“So, we have seen the international prices of steel come off somewhat. It is following a drop in the raw metal prices as well — so there has been a price correction in the month of May. We have seen a $25 kind of drop in the prices as we speak in the month of May from where we were in the month of February-March,” he said.

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Further, Acharya said: “If we were to look at April-June, there is a volatility and we could see some softness coming into the June month. However, I think the margins will remain by and large stable primarily because of the coking coal costs starting to flow through from June into the July-September quarter. So, expect the raw material prices to come down as well. Therefore, we do not see an impact on the markets.”

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Steel, JSW Steel, SAIL— look which metal stocks to buy, sell amid Q4 results buzz; Analysts bullish on these shares

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian metal stocks have underperformed among its sectoral peers, with the BSE Metal index giving negative returns of 8 percent, and the Nifty Metal index down 17 percent on a year-to-date basis. Meanwhile, benchmarks S&P BSE Sensex and Nifty50 have returned 1.52 percent and 0.78 percent, respectively, during this period.

Adding to the gloom, the March quarter earnings posted by some listed companies have also been dull. However, domestic brokerage ICICI Securities sees this as a buying opportunity and its top stock buy in the sector is Jindal Steel, Tata Steel, followed by JSW Steel.

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“While automotive sales stay robust, we still await the uptick in residential demand on ground, despite credit indicators remaining positive. While we maintain our positive outlook on the ferrous space due to robust spot spreads, we would keep a close tab on market balance in China,” said analysts at ICICI Securities.

“Our channel checks indicate buying is down to ‘as per need basis’ as domestic price is still at a premium of 7-8 percent compared to landed price of imports from China and Japan. Besides, major domestic players are resorting to offering discounts of up to Rs 1,500/te in order to match their prices with the one prevailing in the traders’ market,” the note stated.

While import bookings have not taken place last week as dealers expect export prices to further weaken, the brokerage believes in the near term, domestic prices could remain under pressure. In case of longs, rebar prices in secondary market are down to Rs 50,825 — the lowest level thus far in calendar year 2023.

Analysts also said that primary rebar prices might decline further as primary-secondary rebar differential has widened to Rs 7,650/te (average: Rs 4,800/te). “We believe margins of export-oriented players might be impacted more due to steep correction in global HRC prices,” it said.

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The brokerage will keep a close tab on spreads trend in India and demand pick-up or production curtailment measures in China.

Here are the metal stocks to buy, sell, add as recommended by analysts —

Jindal Steel (BUY)

Jindal Stainless (BUY)

SMEL (BUY)

APL Apollo (BUY)

NMDC (ADD)

Tata Steel (ADD)

SAIL (REDUCE)

JSW Steel (SELL)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow