Steel producers not out of the woods yet

摘要

Steel produeers should ideally be in the pink of health, if prices are being hiked and production is growing in double digits, Data from the Joint Plant Committee (industry body) shows production jumped 12 per cent year-on-year (y-o-y) for August to 7.2 million tonnes, against a flat growth of 6.4 million topnes in July. This cheer is visible in the stock prices, too. While the Sensex has risen by 2.41 per cent since August, the BS Steel Index has jumped 23.30 per cent in the same period. What explains such optimism?