STEEL SECTOR
CITI ON STEEL : 28.03.2022
* Citi says if spot spreads sustain, Tata Steel could have significant upside, followed by JSPL. It also expects domestic iron ore prices to rise further
* Overall Demand Growth Prospects For China Materials Relatively Weaker Vs 2021
* Ex-China, Demand For Metals Will Likely Remain Resilient In Next 3-6 Months
* Amid Geopolitical Developments, Believe Reflation Trade Will Last For Longer
* If Spot Spreads Sustain, Tata Steel Could Have Significant Upside, Followed By JSPL
* JSW Steel & SAIL May Be Pricing In Stronger Spreads Than Spot
* Domestic Iron Ore Prices Could Rise Further As Well, Positive For NMDC
JP MORGAN ON STEEL : 11.02.2022
* Steel price hikes start; sharp increase in export prices
* TATA, SAIL trading <3x spot EV/EBITDA
* Regional HRC prices surge on back of re-stocking demand
• Raw material cost push drives HRC prices higher
• HRC prices implied spreads are sharply below recent peak levels
* Suggest that there is scope for further price hikes
BofA SEC ON STEEL : 06.01.2022
* Steel cycle has peaked, Tata Steel only Buy
• Maintain BUY on Tata Steel with Target at Rs 1435/share
• Indian steel prices & stocks have had a strong CY21
• Estimate EBITDA/t decline of 40-56% YoY
* See earnings decline of 37-67% in FY23
* Overall, see Indian steel market being well supplied
JPMORGAN ON STEEL : 07.06.2021
* Steel demand surprisingly strong during lockdown
* Coking coal price surge to limit margin expansion
* Domestic steel demand holds up surprisingly well in April & May
* Steel exports picked up in May, should remain elevated in June
* Domestic steel prices increased again in June, prices close to peak
* Coking coal prices surge, steel spreads likely peaked
* Steel stocks pulled back globally last week
* Maintain our view of near-term consolidation in the Indian Metals & Steel stocks
JPMORGAN ON STEEL : 07.06.2021
* Steel Demand Surprisingly Strong During Lockdown
* Coking Coal Price Surge To Limit Margin Expansion
* Domestic Steel Prices At A Discount Of 15-20% To Landed Steel Prices
* Large Hikes Hereon Unlikely As Regional Steel Prices Are Close To Peak
* Auto Cos Should See Meaningful Increases In Their Contract Prices
* Positive For Companies Like Tata Steel & JSW Steel
MORGAN STANLEY ON STEEL : 07.06.2021
* MS expects elevated steel prices to continue in near term
* May Saw Stable Demand But Was Another Month Of Declining Inventory
* Expect Elevated Steel Prices To Continue In Near Term
* Steel Prices Will Be Supported By Discount Of Domestic To Intl Prices