Indian steel companies prices are lagging and that may take a toll
on their margins by the end of the fourth quarter of FY24. This is because
coking coal prices have shot up over 20% sequentially, and on the contrary,
steel prices have fallen by around 3%. Prabhudas Lilladher hence believes that
steel firms need to hike steel prices to avoid margin pressure. The brokerage's
steel universe currently has eight stocks that it has recommended to buy or
accumulate.
As per the latest report by Prabhudas Lilladher, Indian benchmark
HRC prices (ex-Mumbai) remained flat WoW at Rs 55,000/t despite the firming up
of global steel prices over the last few weeks. Domestic steel spot spread
declined to Rs 20,217/t from Rs 20,715/t WoW. Chinese HRC prices increased 2%
WoW to USD 575/t.