Metals Earnings Preview: Strong Q3 Aided By Healthy Realisation, Says ICICI Direct
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ICICI Direct Report
For Q3 FY21, healthy realisations coupled with subdued operating cost (especially coking coal) is expected to push Ebitda/tonne of steel companies to a multi-year high.
During the quarter, average domestic hot rolled coil prices were at approximately Rs 46700/tonne, up 19% QoQ, 33% YoY.
Furthermore, while during Q3 FY21, average coking coal prices were down 1% QoQ on account of inventory lag impact, the reduction in coking coal costs for steel companies is expected to be in the range of 5-10/tonne U.S. dollar.
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