Trade war: Supply cuts in China mean good news for India's steel-makers

Supply cuts in China mean better prospects for domestic steel players; macro issues to weigh on non-ferrous players

The nervousness around domestic metal stocks aggravated recently with an escalating global trade war. However, experts believe that non-ferrous metal prices will see higher volatility led by a strengthening dollar and sluggish economic scenario in China and Europe, while the ferrous or steel sector is better placed.

For the Indian steel sector, prospects remain even better --- led by domestic demand.

Domestic steel prices, which had continued to rise since November last year, may soften a bit due to the onset of monsoon when construction activities slow down. Nevertheless, it is seen as a temporary hiccup and prices are expected