Global financial services company JPMorgan said on Tuesday that it expects global steel prices to rise further in the coming days. JPMorgan stressed that China's export prices have already reached $620 per tonne and that demand is expected to increase further after the Chinese New Year.
Specifically, domestic steel prices in India have recently increased by Rs 1,500 per tonne in January and land prices are currently Rs 60,000 per tonne.
JPMorgan pointed out that higher steel prices will create a strong earnings environment for Indian steel companies in the coming quarters. However, he said higher coking coal prices will limit margin growth.
Recently, the rating agency CRISIL also stated in its report that the steel industry in India is expected to gain a healthy momentum due to the supply chain change. The agency expects stability in steel prices after the sharp decline in 2022.
Fitch Ratings also said in its 'Global Steel Outlook for 2023' report that it expects steel consumption outside of China to improve, mostly due to dynamic growth in India, Southeast Asia and the US.
Comments
No comment yet.