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India Metals, Mining - Background And Context: Dolat Capital

India Metals, Mining - Background And Context: Dolat Capital

<div class="paragraphs"><p>Flames and smoke rises from red hot coke at a steel factory in India. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
Flames and smoke rises from red hot coke at a steel factory in India. (Photographer: Dhiraj Singh/Bloomberg)

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.

Dolat Capital Report

Ever since we initiated our coverage on the Indian metals and mining sector, there has been a weak demand patch in China (mostly due to- cyclicality, government imposed restrictions on industrial activity to control emissions and credit control in the real estate sector which is again mostly regulatory driven), Covid-19 wave re-emergence in U.S. and Europe and some instances of Covid cases in China.

The ferrous sector has also had to struggle with the sharp spike in coking coal prices and steep fall in iron ore prices, while the cost push driven high aluminum/zinc prices cooled off a bit (10-15% from October peaks) as a result of coal price caps etc in China.

Separately, U.S. Fed has turned less dovish than earlier (while still maintaining the overall accommodative stance). If all this was not enough, another issue of a new Covid variant of concern (Omicron) has propped up, which has already spread to several countries.

Click on the attachment to read the full report:

Dolat Capital -India Metals & Mininng - Sensitivity check to spot prices.pdf

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