JSW Steel hit another new high today at Rs.368.30 and so did Tata Steel at Rs.600.20. SAIL also hit a new high at Rs.53.10 and so did Jindal Steel & Power at Rs.261.75.
The steel sector is indeed having a fantastic run and most analysts expect this sector to deliver some blockbuster numbers in Q3.
This optimism stems from the back of rising steel price, lower input costs and superb domestic demand. Another steel price hike was announced wherein HRC price was raised by Rs.1000/2000 per tonne, taking the ex-Mumbai price to Rs.46,000 to Rs.47,000/tonne.
News is that JSW Steel has also hiked prices of certain steel products by up to Rs.3000/tonne. The EBITDA of most steel companies, post these consistent price hikes is expected to be at multi-year highs – as long as the economic recovery is sustained.