Shares of the manganese miner MOIL surged the most in the metal block, rising over 7 per cent. SAIL, JSW Steel, Tata Steel, Jindal Steel and APL Apollo–all of which produce steel or steel products–climbed in the range of 3-4 per cent.
Nifty Metal was the biggest sectoral gainer, rising 2.66 per cent.
Unconfirmed reports said steel mills are negotiating for a much higher price hike in their biannual steel contract with auto manufacturers. Meanwhile, they are also seeking a flat steel price rise as the global Hot Rolled Coil (HRC) market remains bullish.
Recently, ArcelorMittal, largest steelmaker in the world, increased hot-rolled coil offers to 900euro per metric tonne ($1,060/mt) and hot-dipped galvanized offers to 1,500 euro per mt across Europe, sources told S&P Global Platts on March 26. Mills across the world have been expected to follow suit.
Supply and demand have been off balance since Q2FY20 as a demand pick-up after pandemic-related closures outpaced mills’ ramp ups, with mills battling technical problems and growing order backlogs.