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Metal Sector Q4 Earnings Preview - 2021 Ends On A High Note: Motilal Oswal

Metal Sector Q4 Earnings Preview - 2021 Ends On A High Note: Motilal Oswal

Sparks fly from a ladle at a steel mill. (Photographer: Simon Dawson/Bloomberg)
Sparks fly from a ladle at a steel mill. (Photographer: Simon Dawson/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.

Motilal Oswal Report

Strong demand surge for metals globally further boosted prices during the quarter gone by.

In Q4 FY21, average aluminum/zinc prices rose 9%/4% QoQ, whereas India rebar/hot rolled coil prices rose by 17%/19%.

Steel volumes for our coverage universe are expected to rise by 14% YoY (1% QoQ) on strong demand and low base in Q4 FY20.

On the cost front, coking coal prices rose by 21% QoQ to $143/tonne CNF India. However, the full impact in cost would not be realized during Q4 FY21 due to a lag effect.

Strong rebound seen in London Metal Exchange base in earlier quarters continued in Q4 FY21 as well.

Click on the attachment to read the full report:

Motilal Oswal Metals Q4FY21 Results Preview.pdf

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