Metal Stocks Outlook for the week – 08 to 11.03.2016 Seen trading up next week

Metal Stocks Outlook for the week – 08 to 11.03.2016

Stocks of major mining and metal companies are seen trading up next week due to the
increase in domestic steel prices as well as the push in infrastructure by government in
the Budget for 2016-17 (Apr-Mar).

Domestic steel prices have been consistently improving after government, in
February, announced minimum import price on 173 steel products to keep a check on
cheap foreign imports and provide support to the ailing domestic steel industry.
In the Budget announced on Monday, government allocated 2.21 trln rupees for
infrastructure, which is expected to revive the ailing demand in the metal sector.

Further, government removed the export duty on low-grade iron ore fines and lumps,
which is likely to help exporters like Vedanta to compete in the international market.
The prices have been improving and the metal companies are in an improved state,
but the implementation of these infrastructure projects would be a crucial factor for
the core revival that this sector needs.

However, a preliminary probe by the US Department of Commerce has found JSW
Steel and Tata Steel's UK arms guilty of dumping certain cold-rolled steel flat
products into the country, and this might impact these stocks.