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With continued weakness in fundamentals, shares of major steel makers will track the broad market for cues in the coming sessions. The equity market is seen down next week on continued selling pressure. Also, steel stocks will be slightly weak ahead of the release of Oct-Dec earnings of Steel Authority of India on Tuesday and Tata Steel on Wednesday.
Tata Steel's valuations are more attractive than that of SAIL. We see greater visibility for TSL's (Tata Steel) earnings versus other India steel makers as volumes have been more resilient. Rising raw material cost of steel and increase in steel product prices amid subdued demand for the alloy will keep the metal market subdued in the coming sessions.
Rashtriya Ispat Nigam and JSW Steel have raised product prices for February to bring it in line with the global trend. JSW Steel raised prices of select flat steel products by around 3%, while unlisted Rashtriya Ispat hiked product prices by an average 500 rupees per tn from Feb 1.
Jindal Steel and Power also hiked prices of plates and rebars by an average 1,000 rupees per tn. One is the cost pressure for which product prices have been raised secondly, international steel prices are much higher while domestic (prices) are too low in comparison. so we had to hike (steel product) prices.
Jindal Steel & Power is expected to take a hit in the coming sessions after it reported the withdrawal of talks to acquire Afferro Mining Inc's iron ore mine at Cameroon in Africa. Mining company Afferro Mining has four iron ore concessions in Cameroon in Africa. Since last year, Jindal Steel & Power has been trying to build its coal and iron ore resource overseas but has not been successful.
Development on the company's takeover bid for the entire share of the Australian arm of Gujarat NRE Coke at A$0.20 (11.06 rupees) per share will
also be eyed by the market next week. Gujarat NRE Coke's Australian arm had asked its shareholders to take no action on the steel producer's open offer to buy the latter. Gujarat NRE Coke's Australian subsidiary has said the company will release a statement for its shareholders by Feb 14.
Jindal Steel & Power (Australia), a subsidiary of Jindal Steel and Power, on Jan 31 made a takeover bid for the entire share of the Australian arm of
Gujarat NRE Coke.
With continued weakness in fundamentals, shares of major steel makers will track the broad market for cues in the coming sessions. The equity market is seen down next week on continued selling pressure. Also, steel stocks will be slightly weak ahead of the release of Oct-Dec earnings of Steel Authority of India on Tuesday and Tata Steel on Wednesday.
Tata Steel's valuations are more attractive than that of SAIL. We see greater visibility for TSL's (Tata Steel) earnings versus other India steel makers as volumes have been more resilient. Rising raw material cost of steel and increase in steel product prices amid subdued demand for the alloy will keep the metal market subdued in the coming sessions.
Rashtriya Ispat Nigam and JSW Steel have raised product prices for February to bring it in line with the global trend. JSW Steel raised prices of select flat steel products by around 3%, while unlisted Rashtriya Ispat hiked product prices by an average 500 rupees per tn from Feb 1.
Jindal Steel and Power also hiked prices of plates and rebars by an average 1,000 rupees per tn. One is the cost pressure for which product prices have been raised secondly, international steel prices are much higher while domestic (prices) are too low in comparison. so we had to hike (steel product) prices.
Jindal Steel & Power is expected to take a hit in the coming sessions after it reported the withdrawal of talks to acquire Afferro Mining Inc's iron ore mine at Cameroon in Africa. Mining company Afferro Mining has four iron ore concessions in Cameroon in Africa. Since last year, Jindal Steel & Power has been trying to build its coal and iron ore resource overseas but has not been successful.
Development on the company's takeover bid for the entire share of the Australian arm of Gujarat NRE Coke at A$0.20 (11.06 rupees) per share will
also be eyed by the market next week. Gujarat NRE Coke's Australian arm had asked its shareholders to take no action on the steel producer's open offer to buy the latter. Gujarat NRE Coke's Australian subsidiary has said the company will release a statement for its shareholders by Feb 14.
Jindal Steel & Power (Australia), a subsidiary of Jindal Steel and Power, on Jan 31 made a takeover bid for the entire share of the Australian arm of
Gujarat NRE Coke.
