Metal Stocks Outlook for the week – 22 to 26.02.2016
( www.rupeedesk.in )
Stocks
of major mining and metal companies are seen trading with a
positive
bias next week due to a rise in steel prices and improvement in
the
overall market sentiment. The domestic steel producers have hiked
their
prices by $10-$15 after the imposition of the minimum import price,
so
we can say that they are in an improved position.
However,
companies do not much headroom to increase the prices, as
domestic
demand is still not at a required level. The full impact of the
imposition
of the floor price on steel products is expected to be gradual as
the
companies are likely to hike product prices over the next three
months.
Current
steel prices are below-sustainable levels and need to correct
over
a period of time, as margins of domestic steel producers are under
severe
pressure, JSW Steel Ltd's Director, Commercial and Marketing
Jayant
Acharya had told Media. There are expectations (from the
budget),
that there will be investment in infrastructure and the steel
industry can stabilize post the budget.