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NEW DELHI: Metal stocks gained as reports said steelmakers are seeking another price hike amid recovery in economic conditions, which will further boost their earnings in the next quarter onwards.
Shares of the manganese miner MOIL surged the most in the metal block, rising over 7 per cent. SAIL, JSW Steel, Tata Steel, Jindal Steel and APL Apollo--all of which produce steel or steel products--climbed in the range of 3-4 per cent.
Nifty Metal was the biggest sectoral gainer, rising 2.66 per cent.
Unconfirmed reports said steel mills are negotiating for a much higher price hike in their biannual steel contract with auto manufacturers. Meanwhile, they are also seeking a flat steel price rise as the global Hot Rolled Coil (HRC) market remains bullish.
Recently, ArcelorMittal, largest steelmaker in the world, increased hot-rolled coil offers to 900euro per metric tonne ($1,060/mt) and hot-dipped galvanized offers to 1,500 euro per mt across Europe, sources told S&P Global Platts on March 26. Mills across the world have been expected to follow suit.
Supply and demand have been off balance since Q2FY20 as a demand pick-up after pandemic-related closures outpaced mills' ramp ups, with mills battling technical problems and growing order backlogs.
Shares of the manganese miner MOIL surged the most in the metal block, rising over 7 per cent. SAIL, JSW Steel, Tata Steel, Jindal Steel and APL Apollo--all of which produce steel or steel products--climbed in the range of 3-4 per cent.
Nifty Metal was the biggest sectoral gainer, rising 2.66 per cent.
Unconfirmed reports said steel mills are negotiating for a much higher price hike in their biannual steel contract with auto manufacturers. Meanwhile, they are also seeking a flat steel price rise as the global Hot Rolled Coil (HRC) market remains bullish.
Recently, ArcelorMittal, largest steelmaker in the world, increased hot-rolled coil offers to 900euro per metric tonne ($1,060/mt) and hot-dipped galvanized offers to 1,500 euro per mt across Europe, sources told S&P Global Platts on March 26. Mills across the world have been expected to follow suit.
Supply and demand have been off balance since Q2FY20 as a demand pick-up after pandemic-related closures outpaced mills' ramp ups, with mills battling technical problems and growing order backlogs.
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