Metals Sector Check - Non-Ferrous Counter Looks More Attractive: ICICI Securities
A worker holds a lump of sinter for a photograph in the sintering unit of the Jindal Steel & Power Ltd. plant in Raigarh, Chhattisgargh, India. (Photographer: Udit Kulshrestha/Bloomberg)

Metals Sector Check - Non-Ferrous Counter Looks More Attractive: ICICI Securities

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

With Chinese demand (across commodities) remaining weak as the traditional peak season approaches, there are obvious risks to steel prices – which globally are still at all-time highs and have not seen any meaningful correction (despite sharp drop in iron ore prices).

Globally, steel stocks have seen meaningful compression in multiples as consensus globally expects a sharp correction in steel prices soon.

Timing is a concern, and each day the correction gets postponed, deleveraging adds to fair value.

Click on the attachment to read the full report:

ICICI Securities Metals Update.pdf

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