Metal and Mining share price target

China’s trade data for Dec’22 reflects the impact of weak global demand (affecting exports) and slowdown in industrial activity due to covid surge post-reopening (affecting imports).

Q3FY23 is likely to witness the juxtaposition of lower realisation and coking coal cost benefits, though subdued volume growth may spoil the fairy tale.

Metals and Mining - Q3FY23 Earnings Preview

HRC prices in traders’ market during the week ended 04th Jan’23 rose by Rs1,500/te on average spurred by the possible price hikes by major steel producers. HRC export price (India FOB) also rose slightly to US$600/te tracking regional prices.

HRC prices in traders’ market during the week ended 21st Dec’22 rose further by Rs500/te on an average led by the possibility of a price hike by major steel players in January-23.

HRC prices in traders’ market during the week ended 21st Dec’22 rose by Rs500/te on average led by higher prices in global markets. Far East HRC price rose further by US$60/te, scaling US$600/te for the first time since Aug’22.

HRC prices in traders’ market during the week ended 15th Dec’22 were down by a further Rs350/te WoW on an average. However, rebar in both primary and secondary markets rose slightly owing to gradual pick-up in infrastructure demand.

China’s trade data for Nov’22 was reasonably robust on hopes of easing of covid restrictions and stimulus measures by the government. Key highlights: 1) copper imports, in both refined and concentrate forms, rose 10% YoY and 6% YoY respectively.

HRC prices in traders’ market in the week ended 8th Dec were down Rs800/te WoW on an average, tracking the price reduction up to Rs3,000/te taken by the major steel players.