Tata Steel Ltd, JSW Steel Ltd, Steel Authority of India Ltd saw their stock prices rise more than 1% in morning trades on Wednesday. Jindal Steel and Power Ltd stock prices, however, remained muted. The analysts say that while steel demand in the country remains strong being supported by governments infrastructure spending and is supporting the investor confidence, nevertheless softening steel prices impacted by festive season and rising raw material prices are key risks to near term earning prospects.
The recent channel checks by Motilal Oswal Financial Services Ltd suggest that the steel prices have continued to soften in the country. Analysts at Motilal Oswal said that though a few Tier-I mills rolled over their steel prices for December’23, the spot flat steel prices have decreased 1% week on week and 3% month on month to ₹55,000 a tonne. long steel continues to command a premium over flat steel and is down 1% week on week to ₹55,300 a tonne.
