Market cap of top four steelmakers up 29% in April so far; demand from China is a strong tailwind
The disinvestment of loss-making plants may likely attract interest from secondary steel makers rather than the big players
Steel prices started rallying from March after the Chinese New Year holiday
While Covid-19-led lockdowns across the globe destroyed demand in the early part of 2020, a supply cut-driven rally and sharp recovery in the auto sector have emerged as big themes
The third of the five-part series looks at pick-up in metal sector demand & prices
The demand ranges from financial support to tide over liquidity issues to logistics and trade policy support
Scrap imported at lower prices stuck at ports, finished goods lying at factories with no transport available; shipping firms make hay by charging huge sums for storage at ports
China is the world's biggest metals consumer but also the top exporter of some industrial metals, such as steel and aluminium
Trump administration officials are asking China to cut tariffs on imported cars
Fall in prices of most industrial commodities in last few months is not a trend reversal
Elsewhere, copper armature and brass utensils scrap also edged down owing to mild demand from industrial users
The London Metal Exchange's LMEX Index, which tracks their performance in a single gauge, has risen 9.5% so far in 2016, rebounding after three years of losses
Supply shortage, economic stimulus to support prices