Metal Stocks Outlook
for the week – 24 to 28.11.2014
( www.rupeedesk.in )
Stocks of most metal companies
are expected to weaken in the coming sessions as a fall in steel
prices due to low demand, higher
steel exports from China, and a volatile outlook for pricing of
base metals has dampened sentiment.
However, China's central bank
saying that it will infuse liquidity when needed may support
metal stocks. China is the
world's largest consumer as well as producer of metals, and an
improvement in China's economy
would bode well for both ferrous and non-ferrous metal
companies.
Steel exports from China rose 42%
year-on-year to 73.9 mln tn in Jan-Oct, reducing the pricing
power of Indian companies. Also,
India's steel imports from China have reportedly risen.
Expect weakness in steel prices
to prevail, though further sharp fall is also not warranted. Domestic prices should see
improvement in Q4.
