Motilal Oswal: Steel Spreads At A Multi-Year High
Galvanized steel rolls stand before the polymer coating process in the metal polymer coating unit at the Cherepovets Steel Mill. (Photographer: Andrey Rudakov/Bloomberg)

Motilal Oswal: Steel Spreads At A Multi-Year High

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

Indian steel spreads have risen approximately 25% in Q3 FY21 and are at a three-year high.

We expect spreads to stay strong on the back of a domestic demand recovery and higher regional prices.

The improvement in Ebitda/tonne should be even higher on an improving sales mix (lower exports and higher value-added sales).

We raise our coverage Ebitda estimates by 3-12%/5-13% for FY21E/FY22E to factor in higher spreads.

Click on the attachment to read the full report:

Motilal Oswal Metals Sector Update.pdf

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