Metal stocks tumble

Steel stocks are down in the red today after the Chinese Govt yesterday decided to increase vigilance of commodity markets to curb the rising prices.

The Chinese Cabinet yesterday decided to do all it takes to strengthen its management of commodity supply and demand to curb ‘unreasonable’ price increases and prevent them being passed on to consumers.

There is speculation that to bring down the steel prices, it might roll-back the production curtailments in Tangshan and Handan.

Many metal analysts expect to bring in volatility in the metal price over the next couple of weeks but their long term view remains positive as there is now no threat of imports while export realisations remain high. Here, in India, domestic steel prices remained stable. The steel companies have already announced price hikes, with some becoming effective 1st June and some on 1st July.

The BSE Metal Index is down in the red, with all 10 stocks tracked in this index, in the red. Tata Steel is the biggest loser, among the top fiver losers on the BSE, down 4% at Rs.1118.50. SAIL, Jindal Steel, JSW Steel, Hindalco – all are in the red.