Steel prices are expected to pick up between the third and fourth quarter of financial year 2019, said Alistair Ramsay, head of research-Metal Bulletin Research, adding that he expected a "modest recovery for the aluminium prices in second half of 2018".
The metal index has fallen by 30 percent so far this year.
Although the demand for aluminium in China is starting to slowdown, it still remains largely more positive, according to Ramsay.
With regards to steel, he said a massive surge was expected in the stock levels, especially in China.
"The demand pull for steel and metal is still good," he said.
"However, the material arriving in dollar terms into India would be lower than current levels," he added.
Rakesh Arora, managing partner of Go India Advisors, said that the metal prices in 2017 saw a boost due to China elections and winter cuts. But, the demand from China post the Chinese New year has been weak, which has resulted in weakness in metal prices, he added.
"So, this fall in metal stock prices is a good reality check," he said.
"For steel companies, FY19 could still turn out to be good year from an earnings perspective," Arora mentioned.
First Published: IST