Steel prices are expected to continue their recovery, David Lennox of Fat Prophets, said in a discussion on CNBC-TV18.

“Seeing a v-shaped recovery in China which bodes well for metal sector. We are looking at steel prices to continue to recover primarily on the back of stimulatory,” Lennox said.

Rakesh Arora of Go India Advisors said that the steel upcycle as likely to continue into FY22, and that a combination of strong steep prices and lower coking coal would boost profits of Indian metal companies.

He said the Indian steel prices were at a 3 percent premium to imported Chinese steel.

“Steel price globally should move up and Indian prices should move up in any case because we are into a busy season and restocking is going to play a big role,” Arora said.

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