| Date: |
12-10-2013 |
| Subject: |
Indian steel companies to report higher export volumes - Arihant Capital |
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Domestic steel demand and prices remained subdued during 2Q FY14. Companies with flat product exposure will perform better as flat steel prices declined marginally QoQ as compared to 7 to 8% decline in long steel prices.
Arihant Capital said that “We forecast steel companies to report higher export volumes aided by 12% Qoq rupee depreciation. We expect blended steel realization to improve QoQ by 1 to 2% largely aided by better export realizations.”
In case of base metals Copper, Aluminium and Zinc prices declined Qoq by 2 to 7% in dollar terms, however with 12% QoQ rupee depreciation base metal companies will effectively report 5 to 10% jump in rupee realizations.
It said that “Outlook for metal sector, steel in particular, continues to be cautious. In last 3 to 4 months steel prices globally have increased by 10 to 15% on positive economic indicators immerging from major consuming regions like Europe, the US and China. Steel prices in India, however, remained subdued even after sharp rupee depreciation.”
Source : steelguru.com
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