Steel stocks were on fire as couple of global events went in their favour. Firstly, President Trump came up with a deal with the Chinese and secondly, Brexit is progressing well.
Besides that hike in hot-rolled coil (HRC) prices was more than expected at around Rs 1500 per tonne. The street was bracing for a hike in HRC prices by around Rs 1,000 per tonne.
According to Edelweiss, hot-rolled coil prices are up by nearly around 9 percent from the recent lows and are at 5 month high.
With regards to long products, the management of JSPL had indicated that the demand was quite strong, basically coming in from the infrastructure sector. While, Edelweiss said that secondary market too showed recovery in December. There is also a good possibility of rebar prices moving up. On back of this news, both SAIL and JSPL stocks were holding in the green.
Meanwhile, SAIL has an additional kicker because they delivered growth in sales of around 48 percent in December. For the quarter, the growth was around 4 million tonnes odd.
Now, with steel prices going up, the raw material prices have also gone up and Odisha miners have increased prices two times in the last 20 days. NMDC too has hiked prices by around 7.5-8 percent at around Rs 200 on both fines, as well as lumps. Therefore, NMDC stock is up as well.