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Stocks of major steel companies are seen slightly up next week on expectations of positive quarterly earnings despite moderate demand for the alloy in the domestic market. Steel supply has stayed steady but domestic demand is picking up now, and this is likely to lend support to steel companies. Stocks of major steel companies fell 0.50-2.00% in the past week as fundamentals hinted at negative supply-demand picture then. CARE Research in its report released Wednesday said domestic demand for steel is likely to increase at a compounded annual growth rate of 6.7% during 2012-2017, while supply is seen rising at a rate of 7.6%. Demand for flat steel products will be driven by the automobile and pipe manufacturing sectors, while that for long products will continue to rise led by the growth in India's construction segment. Technically, all steel stocks look bullish in the coming week and buying on dips is recommended.
