Indian steel spreads will decrease in the June quarter, with a boost for pellet makers: InCred

Breaking News

Govt Enforces ‘Melt and Pour’ Rule for All Steel in Public Projects Nippon Steel expected to finalize U.S. Steel acquisition at $55 per share NMDC Limited reports a 38% drop in Q4 FY24 consolidated net profit RINL to Raise $23 Million Through Land Sales Amid Crisis

Indian steel spreads will decrease in the June quarter, with a boost for pellet makers: InCred

Ferrous 26 Jun 2024 03:11 PM IST CNBC

InCred, an analyst organisation, predicts that domestic steel spreads in India will fall further in the first quarter of FY25 compared to the previous year. According to InCred, the profit after tax (PAT) for the Indian steel spreads may decrease this quarter compared to the same quarter in the previous fiscal year. The anticipated deceleration can be attributed to China's increasing steel output, which has caused a decline in global pricing.

China's steel export prices have dropped by $25 per tonne on a quarter-to-quarter basis during the last few quarters, whereas European HRC has fallen by $75 per tonne in the same period. InCred has suggested selling the shares of Tata Steel and Steel Authority of India Ltd (SAIL), the country's largest steel manufacturer.

Shares of Tata Steel have gained 25% this year, while SAIL's shares have risen over 16% yearly. Over the last year, the two companies' stocks have increased by 60% and 71%, respectively. InCred, which ranked NMDC as its top choice, forecast that stocks of pellet makers would soar. India's largest iron ore producer, the company, gets a buy recommendation on its equities, according to the firm.

NMDC has highlighted the Electric Arc Furnace route (EAF), which recently caused a spike in scrap prices. InCred explained its stock position, noting that iron ore prices are projected to rise in the coming months.

Similarly, pellet premiums are projected to remain elevated in the long run, matching iron ore miners' price tendencies. NMDC Ltd.'s shares on the BSE have increased by more than 23.33% in the last six months and 23.43% year to date.

Also Read : Global DRI production surged by 7.4% y/y in Q1 India's steel demand is expected to grow by 8-10% in FY25

Breaking News

Indian steel spreads will decrease in the June quarter, with a boost for pellet makers: InCred

Related News

20 coal mines are planned to be set up by year's end

ArcelorMittal Cautions on Global Steel Trade Amid Rising Costs

PM Modi unveils over ₹1,330 crore worth of projects

India’s Steel Exports Rise 11.7% Y/Y in April 2025

India's coal import surges to 212 MT in April-Jan period

Trump Approves Nippon Steel’s $14.9B U.S. Steel Deal with “Golden Share” to Safeguard American Control