Steelmakers' prospects receive a boost from improving China data

Encouraging economic data from China, rising demand and higher realisations improve earnings outlook

Domestic steel stocks remain on a strong footing, encouraged by positive economic data from China, improving realisations, and firm volume numbers reported by companies. 

After a strong rally since March-April lows and a correction thereafter, stocks of Tata Steel, JSW Steel, Jindal Steel and Power (JSPL) and Steel Authority of India (SAIL) have rebounded up to 26 per cent since September 24. And, analysts say there is more steam left in the rally.

China’s September data was encouraging as it saw 9 per cent year-on-year (YoY) surge in iron ore imports, while its steel exports declined 28 per cent YoY. Reuters reports