SAIL - A really long term opportunity


#45

Can it be beneficial for Indian players as well?


#46

#47

IMO, all these discussions about China capacity cuts is just meaningless. They need to show the world that they are doing something or they will keep getting wrap on the wrist on the trade front. One needs to follow actual production which is elevated and will remain so. Has China steel import threat gone away? a clear no! Also, when China capacity utilisations are not even 80% how does it matter if few tens of mt capacity is shut for various reasons. Steel prices depend on raw materials and market tightness. China domestic market has incrementally tightened but capacity cuts has little role to play here.


(Kesavan) #48

Is there any way to confirm this, Source here is quoted as ’ three people in the know’ ??


(sivaprakasamp) #49

I think the hikes are happening due to import curtailment. The price hikes will support raw material price escalation. Overall in the short term margin appears to be supported.

Disc: Invested in SAIL