Anand Shah, Head-PMS and AIF Investments at ICICI Prudential AMC, said that bottom-up and top-down is favourable for the steel sector for the next 10 years. “It is a twin story. Steel prices in the last decade were extremely depressed because of overcapacity in China. We feel that the next decade will be significantly different vis-a-vis what they were in the last 10 years. Steel prices will be relatively higher; we are not really talking about super cycle, but the prices will be relatively higher,” he said in an interview to CNBC-TV18.

“The second part of our exposure to steel sector is also about improving the balance sheet, profitability of Indian companies, which have significant exposure in the form of iron ore. They have huge backward integration in the form of raw material, especially iron ore. So, that is a big advantage that the Indian steel companies have. So, it is both, bottom-up and top-down being favourable for the sector from a next decade perspective,” he explained.

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(Edited by : Dipika)