Metals Sector Update - All Time High Spreads In A Deep Cyclical Sector: ICICI Securities 
An employee skims slurry from a crucible of molten magnesium at the foundry. (Photographer: Ty Wright/Bloomberg)

Metals Sector Update - All Time High Spreads In A Deep Cyclical Sector: 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

Capacity cuts in China (steel) fueled expectations of it becoming a net importer of the metal.

Yet, as data shows, higher spreads continue to incentivize higher production in March 2021.

Global recovery, fiscal stimulus, environmental, social and governance (ESG) driven supply cuts/cost incidence have been fuelling expectations at these sky-high spreads, ignoring the deep cyclicality of the sector.

We do expect demand destruction across regions as prices consolidate at current levels; current signals of possible price control out of China further reinforce our view.

Click on the attachment to read the full report:

ICICI Securities Metals Sector Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.