Favourable winds from the East signal more gains for steel players

Firms witnessing expansion-led volume growth and cost-efficient operations are preferred picks

The demand for steel has grown by over four per cent till August this financial year, but the full benefits to manufacturers would accrue now.

The June quarter performance was impacted by the goods and services tax (GST) -led destocking. A correction in international steel prices also weighed on domestic prices. Lower Chinese steel prices meant higher imports into India.

Edelweiss’ channel checks had suggested that while the demand surged 4.5 per cent year-on-year (y-o-y) in August, the imports surged 62 per cent at 955,000 tonnes on account of material booked during April-May 2017 when China’s export price dropped to