Tata Steel, JSW Steel, Jindal Steel Power, SAIL share prices gain up to 5% on strong China industrial output numbers
Tata Steel, JSW steel, Jindal Steel and power Ltd( JSPL) , Steel Authority of India Ltd (SAIL) saw their share prices rise up to 5.1%. The same helped gain for the Nifty metal index that ended the day with gains of 2.49%. The strong Industrial growth numbers in China lifted the sentiments for steel stocks and metals and mining pack as a whole.
China industrial output increased by 7% in January and February compared to the same period last year, as per the the National Bureau of Statistics announcements in China on Monday, which as per Bloomberg news report was significantly faster than what economists had predicted. Forecasts were not met as fixed-asset investment growth accelerated to 4.2% suggested Bloomberg . The 5.5% increase in retail sales was also in line with projections.
Also Read- Tata Sons to sell 2.34 crore shares of TCS worth ₹9,000-crore via block deal: Report China is the largest consumer of commodities in the world and therefore any pick up in China demand can lift overall global steel demand and prices of commodities. Weak China demand had meant that exports from China remained elevated putting pressure on global steel prices too. The steel prices in India had also remained in a downtrend .
As per Kotak Institutional Equities 14 March report, in 4QFY24, average domestic Hot rolled coil (HRC) and rebar prices fell by 4% and 7% respectively, while Chinese export offers went up by 2%. Steel margins are expected to be under pressure sequentially in 4QFY24, as indicated by declining steel prices and rising iron ore and coking coal prices, as per Kotak analysts. Also Read- NTPC, Power Grid, NHPC: new CERC regulations slightly positive for generation firms, mildly negative for transmission The rising China
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