Metal Stocks Outlook for the week – 09 to 13.03.2015
( www.rupeedesk.in )
Stocks
of metal companies are expected to fall next week due to weak sentiment, with
China
cutting
its 2015 growth target. The largest consumer of metals lowered its growth
forecast for
2015
to 7% after a 7.4% expansion last year.
A
lower growth in China is a double whammy as it implies lower consumption of
metals and
higher
exports from the country. Steel producers have repeatedly stated that prices of
their
products
are under pressure due to cheap imports from China.
JSW
Steel's stocks saw an uptick during the week as it won the Moitra coal block
for 1,512
rupees
per ton. We believe that the company got the coal block for a good price and
sees it as a long term positive for the company.
