Metal stocks continue to shine: Tata Steel hits 52-week high, JSW Steel up 1%; here is why

Metal stocks today: Shares of metal companies traded with impressive gains in the morning trade on Monday (September 4). Metal stocks rallied after an increase in the price of steel rebar. As per reports, steel rebar prices have increased by Rs 1,500–Rs 2,500 per tonne, and this is the fifth time in five weeks that the rebar prices have seen an appreciation, the report added. Among the individual names, JSW Steel has increased the rebar prices from Rs 54,000 per tonne to Rs 56,500 per tonne.

At 10:43 AM, the S&P BSE Metal index traded nearly 3 per cent higher at 23,204.70 levels. Tata Steel hit a 52-week high of Rs 132.85 on the BSE, while JSW Steel was trading at Rs 817.85, up 1.45 per cent.

Here's how the metal basket fared on Dalal Street:

Steel Authority of India Ltd (SAIL)
At 11.36 AM, shares of SAIL were trading 6.65 per cent higher at Rs 103.50 apiece. The company's shares have jumped over 10 per cent in the last month and 18 per cent in the last five trading sessions. 

SAIL's shares last exchanged hands at Rs 102.72 each today, September 4, up 5.95 per cent on BSE from its last close.

Kalyani Steels Ltd
Another player in the metal industry, Kalyani Steels' shares were 1.55 per cent up today at 11.36 AM, trading at Rs 507.15 per share. The company's shares recorded 19.81 per cent growth in the last month and more than 60 per cent in the past six months.

Shares of Kalyani Steels closed at Rs 516.90 per share, up 3.55 per cent on BSE on Monday, September 4.

Tata Steel Ltd
At 11:30 AM, Tata Steel shares were up 4.25 per cent at Rs 132.50 apiece on the BSE. The company's shares opened at Rs 128.85 today. In the last five trading sessions, Tata Steel shares have jumped over 12 per cent and more than 25 per cent in the last six months.

Tata Steel's shares last traded at Rs 131.70 apiece today, September 4, up 3.62 per cent on BSE.

JSW Steel Ltd
JSW Steel's shares were trading at Rs 811.30 apiece, up 0.63 per cent on Monday, September 4 at 11.35 AM. The company's shares last closed at Rs 806.20 each. JSW Steel's shares have provided a return of 4.33 per cent in the last five days and more than 20 per cent in the last six months.

Shares of JSW Steel closed 0.43 per cent higher today, September 4, at Rs 809.65 each on BSE.

A look at metals' demand in India

According to Prabhudas Lilladher's analysis, India is predicted to develop at a far faster rate than the rest of the globe, and the government's sustained strong push for infrastructure expenditure is likely to enhance steel consumption.

Domestic demand drove a 6 per cent CAGR increase in Indian steel consumption from FY07 to FY23. Domestic steel output has increased at a 5.8 per cent annual rate over the previous decade, exceeding consumption growth of 5 per cent, as per the report.

"With demonstrated resiliency in containing costs and inflation over the last 18 months, we expect developed nations to start contributing to metals demand over the next two quarters. As there's a strong push for refurbishing infrastructure in most parts of Europe and given the US' commitment to generating employment, we expect demand for metals to improve over the next two years, supporting prices. We believe global steel prices are bottoming out and can show an uptick if there is a gradual recovery in demand," the brokerage said in its report dated August 28.