Steel Sector Check - Volumes Stay Strong, More Price Hikes Likely: Motilal Oswal 
A coil of red hot wire rod cools at the steel mill. (Photographer: Andrey Rudakov/Bloomberg)

Steel Sector Check - Volumes Stay Strong, More Price Hikes Likely: 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

Operational data reported by Indian Steel companies indicate that volumes remained strong in Q4 FY21, growing 15% YoY/1% QoQ.

We believe that mix has risen in favour of exports due to strong realization. Exports rose 126% month-on-month in March 2021 to 1.3 million tonne (highest in the last eight months).

Indian mills have raised flat steel prices by Rs 3,500-4,000/tonne in April 2021, which has been absorbed by the market.

We believe further hikes are in store in the next few weeks as the Indian hot-rolled coil prices still trade at a discount of ~Rs 5000/tonne to import parity prices.

Click on the attachment to read the full report:

Motilal Oswal Steel 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.