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