Select steel stock up on the prospect of further price increase, tight supply
Stock certain steel players are in green on March 28 regarding the prospect of further price increases in the coming months.
At 10:00 a.m., Ratnaman metal shares, Tata steel, and JSW steel rose 0.2-1 percent on the national stock exchange.
This sector received Fillip after Phillip Capital broker in a record saying that JSW Steel has raised the price of the Hardness Rockwell Clice Clice price with Rs 2,000 per ton on March 25 after raising prices on the month.
Hike in a row price has come after a pause for a moment on a price increase by steel companies because of softening global commodity prices before the Russian invasion to Ukraine last month.
However, the price of global commodities has surged in the past month because of the sanctions imposed on Russia by several developed countries after the invasion of Ukraine. Furthermore, the return of locking in several Chinese cities after a surge in Covid-19 Spike has also worsened the supply situation in the steel market.
China recently imposed a gradual locking in one of its biggest industrial hubs, Shanghai. Analysts believe that locking can further tighten the steel market as termination of production of cessation in the region.
Citigroup’s broker in a note said that in the midst of geopolitical tension, the trade ‘refllation’ in 2021 could last longer. Brokerage company is a view that if the current spread at the price of sustained steel spots, Tata Steel can see a significant positive side followed by Jindal Steel & Power.
Analysts believe that further increase in HRC steel prices of RS 3,000 per ton by domestic producers cannot be ruled out.
