METAL STOCKS OUTLOOK FOR THE WEEK - 15 TO 19.09.2014
( www.rupeedesk.in )
Stocks of metal companies are expected to trade mostly rangebound next week as market
participants await clarity on the Supreme Court order on coal block allocations.
Although we acknowledge the fact that there will be an initial oversupply period in the
flat steel segment because of capacity addition by SAIL, Tata Steel and JSW Steel, it will
be absorbed by demand growth and capacity fine-tuning.
News reports indicating that JSW Steel will buy rolling mills and some other assets of
Italian steelmaker Lucchini surfaced again this week. We believe that this will augur well
for the company, they remain unconvinced about the deal going through as Italian trade
unions are opposed to the deal.
