Domestic steel prices to correct in December; cautious on non-ferrous metals: Phillip Capital
Metal stocks continue to move down with the index slipping over 2 percent on November 30. Vikash Singh, Vice President of Metals & Mining at Phillip Capital, shared his outlook on metals.
According to him, the first half of 2022 still looks good for the steel sector.
“So we are not that negative on steel as of now,” he said.
However, he expects some price correction in the domestic market.
“On steel outlook, we feel December might be a little bit weaker because we are expecting some price correction in the domestic market,” he said.
He believes, Vedanta got supported by the news of promoters buying.
“In the non-ferrous space, they are more exposed to the global market than the ferrous space because their dependence on exports is much higher than steel. So I would be trading a little bit cautious in the non-ferrous space,” he said.
On the ferrous side, iron ore has fallen roughly about 55 percent from its peak levels.
A string of bad news on the macro front as well as the new variant of the coronavirus- Omicron has also shaken the sentiment of the investors.
On the non-ferrous side, power cost has been playing a vital role in terms of defining the end prices of aluminum as well as zinc.
For the full interview, watch the accompanying video.
(Edited by : Dipikka Ghosh)