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Metals sector eyes recovery as prices rise after scraping the bottom

Steel, iron ore firms gain pricing power, hope for demand revival in base metals

metals sector, lead, copper, aluminium, steel
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Rajesh BhayaniIshita Ayan DuttT E Narasimhan Mumbai/Kolkata/Chennai
The S&P BSE Metal index is pointing towards a recovery in the metals segment. The index has jumped 22.4 per cent in the past three months, outperforming the benchmark Sensex by a wide margin. 

Steel companies have been increasing prices in this period, after hitting bottom. Base metal companies are also hoping for a demand revival and an improvement in order books. 

In the past one month, the London Metal Exchange (LME) is up 4.8 per cent, while prices of other metals like steel and iron ore are up 3.5 to 5.8 per cent.

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