Steel stocks surge on Chinese speculation

There is an unusual excitement around scrips of steel companies on the bourses. If sector analysts are to be believed, the Chinese government is going to impose another round of clampdown on steel exports in mid-2008. According to metal analysts, the Chinese government, in all probability, would set a threshold limit on minimum export volume.

Such a move would put thousands of smaller Chinese steel exporters out of business. This will automatically boost regional steel prices, which in turn would help Indian steel manufacturers sell at higher prices. This premise gained ground as share prices of several steel companies surged on Friday.

Ispat Industries, SAIL, Tata Steel and JSW Steel ended up in the range of 3-5% on the BSE on Friday.

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