Amid key concerns, metal stocks may see soft trend in medium-term

Cloud over domestic demand, rising global supplies and high valuations are key concerns

For the past two quarters, steel and other industrial metals have been bright spots. The metals cycle changed with renewed demand as the global economy resumed activity. In India, iron and steel companies, and also non-ferrous producers, saw huge jumps in profitability. A recent report from Credit Suisse (CS) suggests the cycle may be peaking and the Indian steel industry, in particular, may be vulnerable.

The Q4 results of 16 listed steel companies saw aggregated YoY rise of 47 per cent in revenues (Rs 77,183 crore against Rs 52,823 crore a year ago) and Rs 11,843 crore in PAT against