Tata Steel, Vedanta, JSW Steel, Jindal Steel & Power (JSPL), Steel Authority of India (SAIL), NMDC, NMDC and Jindal Stainless (Hisar) were down in the range of 2% to 4% on the National Stock Exchange (NSE).
At 10:17 am; Nifty Metal index was down 1.9% at 3,114 points, as compared to a 0.01% rise in the Nifty 50 index. In the past five trading sessions, metal index dipped 8.3% against 1.2% decline in the benchmark index.
Nifty Metal index trading at its lowest level since July 23, 2018, is 1.7% away from its 52-week low level of 3,062 recorded on July 20.
JSPL, SAIL, Vedanta and Hindustan Zinc from the index hit their respective 52-week lows on the NSE in intra-day trade today.
According to a Reuters report, US President Donald Trump expects to move ahead with raising tariffs on $200 billion of Chinese imports. In an interview with the Wall Street Journal, Trump said it was "highly unlikely" he would accept China's request to hold off on a planned increase in the tariffs from 10% to 25% due to take effect on January, 1, the report suggests.
The global on-going trade wars, appreciation of the US dollar and fears of a global slowdown have been dragging the prices of copper to an over one-year low.
“LME Copper prices are to remain volatile till there is some settlement between the trade/tariff wars which are prevalent in the global economy. The winter cuts which will be announced soon in China might elevate copper prices,” CARE Ratings said in a report.
The domestic steel prices during H2FY19 could get impacted by the demand-supply situation in China (the world’s largest steel producer). The demand for steel in China remains usually weak during winters as construction slows down in the country. This, in turn, can bring some moderation in international steel prices, the rating agency said in sector update.
“Despite impressive earnings growth, we see a clear dichotomy between consensus Ebitda (earnings before interest, tax, depreciation and amortization) progression and stock price movement. We find that valuations have come off for all companies in the sector. This is particularly stark in case of ferrous companies. Due to macro concerns, we expect valuations to remain subdued despite earnings growth,” analysts at Edelweiss Securities said metals & mining result review.