Rising Steel Demand Gets Indian Metals Hot under the Collar

Global manufacturing activity has shown signs of recovery in recent months, raising hopes for metal companies worldwide.

In China and the US, factory activity expanded after contracting for multiple quarters, indicating stabilisation of economic conditions.

The increased demand of the metal, especially the bearish one, means there is a high possibility that the metal prices will continue going up.

Given these Gauges of factory activity, we can understand how the demand for metals from these two powerhouses may grow up.

Encouraged by the macro signs, Jefferies raised its target price for Tata Steel by a sizable 20% to Rs 200 per share.

The target for Hindalco was also raised 20% to Rs 700. Though a “Hold” rating was retained on JSW Steel, its target got a modest 3% boost to Rs 900.