ICICI Securities: Metal Sector Outlook 2021 - Steer Clear Of Steel, Aluminium 
An employee sprays water to cool the mud gun of blast furnace inside the metal blast furnace unit.(Photographer: Dhiraj Singh/Bloomberg)

ICICI Securities: Metal Sector Outlook 2021 - Steer Clear Of Steel, Aluminium 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Our outlook for metal stocks under coverage remains cautious to negative for CY21. We rate all metal stocks at either hold /reduce /sell. The current margins, valuations clearly tell a story of caution.

Chinese demand stimuli, artificial raw material shortages through restrictions on scrap imports (helping all the commodities - iron ore and aluminium in particular) sustain the rally for now.

Deleveraging, as a theme, is important but overhyped given such cyclically high margins, valuations.

Click on the attachment to read the full report:

ICICI Securities Metals Sector Outlook.pdf

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