Edelweiss on Thursday said the house has preference for the ferrous stocks over non-ferrous stocks and is bullish on Tata Steel and JSW Steel.
In an interview to CNBC-TV18, Amit Dixit, research analyst, said, "The increase in iron ore or pellet prices are largely due to the impending winter shutdown in China and so demand also went up."
According to Dixit , there were some supply side issues with Swedish manufacturer, LKB, going out of operation.
But Dixit is not sure of pellet prices would sustain at elevated levels as increase in prices will sustain as long as there are production cuts in China, "The pellet prices are at very high levels. Proportionately, prices of longs or downstream products have also gone up, like for rebar and sponge iron."