Steel shares, which have been northward bound, moved up further on Tuesday on reports that steel makers like SAIL and Vizag Steel have raised prices of long steel products recently.
PSU steel giant SAIL plumped up 7.7% to Rs 11.10 on high volumes of 2.11 million shares.
Among other gainers were Bhushan Steel (up 7.5% to Rs 36.50), Jindal Vijaynagar Steel (up 8.7% to Rs 6.25), Jindal Iron & Steel (up 6.7% to Rs 71.30), Essar Steel (up 5.6% to Rs 9.40), Ispat Industries (up 4.5% to Rs 5.75) and Tisco (up 1.5% to Rs 157.65). Tisco scaled a 52-week high today.
Steel shares have been a firm feature of the market on the back of rising product prices. Expectations of strong Q3 results are also driving up steel scrips.
As per reports, SAIL and Vizag Steel have recently hiked prices of long steel products, the third hike this month. Effective from 19 January, SAIL has hiked prices of long products especially construction grade rebars and structurals by Rs 200-500 per tonne. SAIL is the largest long steel maker with a capacity of 4.5 million tonnes.
Vizag Steel, the second largest long steel maker with a 3-million-tonne finished steel capacity, is reported to have hiked prices by about Rs 400 per tonne effective from 16 January 2003, reports suggest. The current low inventory positions has prompted steel makers to hike prices, it has been reported.
Besides long steel, flat steel products are also rising due to the firm trend in international flat steel prices. Tisco announced a hike in flat steel prices from 1 January 2003. Reports suggest that a further hike in flat steel product prices is on the cards some time end-January or early February 2003.
On Monday, flat steel maker Jisco reported a surge in its Q3 net profit that reflected resurgent steel prices. For Q3 ended 31 December 2002, Jisco reported a net profit of Rs 29.86 crore compared to a net loss of Rs 15.34 crore in the corresponding period last fiscal. Its total income (net of excise) increased 59.7% from Rs 259.20 crore (Rs 2.59 billion) in DQ-01 to Rs 413.98 crore (Rs 4.13 billion) in DQ-02.
There are high expectations being built around the Q3 results of Tisco (to be announced on 23 January 2003) and SAIL (on 28 January 2003).
For the quarter ended 30 September 2002, Tisco posted an impressive 642.6% rise in net profit to Rs 203.18 crore (Rs 2.03 billion) as against Rs 27.36 crore in the corresponding period of the previous year.
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