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Steel stocks are seen range-bound with a positive bias next week as the market has already factored in recent positives for the sector such as the hike in steel product prices and the better-than-expected Chinese manufacturing data. Since steel stocks have already been up last week, there is not much room for significant gains. Although the market has already factored in news of product price hikes by the steel companies, there is a chance that stocks might see some rise. However, the actual rise in price will be much lower than what has been announced due to current weak demand for steel. JSW Steel had announced a 4-6% price hike from Sep 1, and Jindal Steel and Power will announce their price hikes soon. The rest of the steel companies are also expected to follow suit. JSW Steel and Tata Steel look the strongest for next week and will outperform the rest of the sector.
Steel stocks are seen range-bound with a positive bias next week as the market has already factored in recent positives for the sector such as the hike in steel product prices and the better-than-expected Chinese manufacturing data. Since steel stocks have already been up last week, there is not much room for significant gains. Although the market has already factored in news of product price hikes by the steel companies, there is a chance that stocks might see some rise. However, the actual rise in price will be much lower than what has been announced due to current weak demand for steel. JSW Steel had announced a 4-6% price hike from Sep 1, and Jindal Steel and Power will announce their price hikes soon. The rest of the steel companies are also expected to follow suit. JSW Steel and Tata Steel look the strongest for next week and will outperform the rest of the sector.
