Metals Sector Q3 Preview: Strong Pricing Trends To Boost Earnings, Says Motilal Oswal
A coil of red hot wire rod cools at the steel mill. (Photographer: Andrey Rudakov/Bloomberg)

Metals Sector Q3 Preview: Strong Pricing Trends To Boost Earnings, Says Motilal Oswal

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

With global economies rebounding from the Covid-19 pandemic, demand for metals improved significantly. This, coupled with a raw material shortage, has pushed metal prices higher.

In Q3 FY21, average aluminum/zinc prices rose approximately 13% QoQ each, whereas Indian steel prices rose ~19% QoQ.

We expect domestic steel consumption to rise ~7% YoY in Q3 FY21.

Steel volume for our coverage universe is seen declining 5%/1% QoQ/YoY due to inventory liquidations in the base quarters.

Click on the attachment to read the full report:

Motilal Oswal Metals Sector Update.pdf

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