Valuations, demand uptick hopes favour Indian metal companies

Most metal players have underperformed the benchmarks over the past year

Devangshu Datta
Industrial metal

Industrial metal

The reopening of China has led to an ongoing readjustment of the global metals and commodities markets. China has a massive production capacity surplus to its own domestic demand. At the same time, it also has high domestic demand.
China is also becoming carbon sensitive. The country’s data has not yet been released since China clubs January-February data together due to the New Year holiday period.
As a result, industrial metal prices have been volatile. International steel manufacturers who were suffering from low demand, have started to hike prices. Raw material costs have also soared. This could start to impact margins for Indian steel producers from the first quarter of the 2023-24 financial year (Q1FY24) although margins should not be affected much during Q4 FY23.

Also Read

10 of 13 key commodities dip in Samvat 2078 after hitting multi-year peak

Metal sector: Investors should brace for a difficult Q2; H2 could be better

With markets near all-time highs, which sectors should you bet on?

Major non-farm commodities to take guidance from Dollar in new Samvat

Metal stocks rally despite decline in corporate earnings in Sept quarter

Siemens scaling new heights on strong performance, govt's infra thrust

Despite NCLT setback, analysts remain positive on Zee Entertainment

Investors should remain upbeat on cement sector; price hike is a positive

With peak summer season ahead, Voltas may see volumes and margin gains

Near-term demand worries in replacements biz cloud Apollo Tyres' outlook

First Published: Feb 27 2023 | 9:13 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to