Sentiment turns stronger for steel stocks on hopes of better prospects

The Street is speculating on sustainable rebound from Q2 led by better prices and lower costs

Industrial metals (ferrous and non-ferrous) suffered great volatility once the Ukraine War began in February 2022. First, there was a sharp price rise due to fears of supply disruption, followed by weak global demand.

China’s weakness and rolling lockdowns have hit production and demand. China’s central bank recently cut rates to try and revive real estate. If the real estate sector of China rebounds, this would be a key trigger. But if stimulus doesn’t show quick results, global demand may stay muted. 
 

India is also a key player. Steel demand is driven by construction, due to the Budget policy thrust. There