Metals Weekly
15 April 2013
Metals Weekly
Valuations: Indian companies
Price
EV/EBITDA P/BV
(INR) FY14E FY15E FY14E
Steel
Tata Steel
SAIL
JSW Steel
JSPL
NMDC
Sesa Goa
Non-ferrous
Sterlite Inds.
HZL
Nalco
Hindalco
299
60
679
328
125
148
89
117
34
92
6.0
5.9
7.1
7.8
3.2
10.2
3.0
3.2
4.0
5.9
6.2
5.8
6.3
6.2
2.7
5.0
2.6
2.5
3.0
5.4
1.2
0.6
0.9
1.4
1.5
0.9
0.6
1.3
0.7
0.8
TMT- Mumbai (INR/ton)
HRC- Mumbai (INR/ton)
HRC (USD/ton) fob CIS
Metal Prices
CMP
15-Apr
34,900
36,565
565
%
1
0
0
1
1
4
-2
-2
0
0
-3
-1
0
-3
1
2
-1
-5
-4
0
0
Week
8-Apr
34,600
36,565
565
19,950
24,200
138
265
384
5,203
1,845
102
1,142
1,848
102
588
7,376
405
29,310
51,270
2,042
1.02
Quarter
% 1-Apr
0 34,900
0 36,565
0
565
2 19,800
1 24,200
4
138
-2
265
-2
385
-1
-2
-3
-3
-1
-3
4
-1
-1
5,228
1,881
102
1,171
1,870
102
571
7,582
408
YTD CY13
% 1-Jan
-3 35,900
2 35,676
5
538
-5
1
1
-21
-1
0
-10
-11
-7
-9
-11
85
-5
-9
-9
-14
-13
4
21,150
24,200
141
330
378
5,210
2,040
112
1,221
2,034
111
321
7,915
441
30,631
57,172
2,340
0.98
Sponge iron - Raipur (INR/ton)
20,150
Pig iron - Raipur (INR/ton)
24,500
Iron ore spot (USD/ton) cfr China
143
Coke (USD/ton) fob
260
Shred. scrap (USD/ton) Rotterdam
376
LME inventories (‘000 ton)
LME Spot (USD/ton)
Indian prices (INR ‘000/ton)
LME inventories (‘000 ton)
LME Spot (USD/ton)
Indian prices (INR ‘000/ton)
LME inventories (‘000 ton)
LME Spot (USD/ton)
Indian prices (INR ‘000/ton)
5,195
1,841
99
1,136
1,843
99
594
7,509
402
Note: Detailed table on pg 23
Source: MOSL
Valuations: Global companies
Price
EV/EBITDA
CY13 CY14
P/BV
CY13
Mining
BHP
AUD 33.4
6.9
5.9
2.4
FMG
AUD 4.0
7.2
5.1
2.3
Rio Tinto AUD 56.9
5.6
5.2
1.8
Vale
USD 17.5
5.3
5.3
1.1
Teck Res. USD 27.8
6.3
5.3
0.9
Xstrata
GBp 1043
7.0
6.2
1.0
Steel
A. Mittal
EUR 9.3
6.0
5.0
0.4
Posco
k KRW 321
5.1
4.7
0.7
US Steel USD 17.5
5.3
4.2
0.7
Nucor
USD 44.3
8.6
6.2
1.8
JFE
JPY 2030 11.4
7.3
0.8
Gerdau
BRL 14.5
7.3
6.0
1.1
Bao Steel CNY 4.9
5.9
5.6
0.8
Non-ferrous
Alcoa
USD 8.2
7.0
6.0
0.7
Norsk HydroNOK 25.7 7.5
5.6
0.7
Rusal
HKD 4.3 15.2 13.5
0.7
Detailed on pg 23
Source: Bloomberg
Gold (INR/10gms)
27,748
Sliver (INR/1kg)
49,313
Lead Spot LME (USD/ton)
2,046
FC 6-8% C basis 60% Cr (USD/lb Cr) 1.02
INR/USD
BDI
-6 29,526
-6 52,621
-2 2,094
-1
1.03
54.7
0
54.6
0
54.5
0
54.7
875
2
858 -4
910
25
699
Source: Metal Bulletin, Bloomberg, Steel Mint, MOSL
Steel prices remain subdued; Iron ore up 4% WoW on Chinese
restocking
Steel prices continue to remain weak and declined 1.5% , 0.5% and 1.7%
BSE Metals Index v/s Sensex
BSE Metals Index
Sensex
102
100
98
96
Source: Bloomberg
Note: Indexed to 100 on 8 April 2013
Stock performance table on pg 24
Investors are advised to refer through
disclosures made at the end of the
Research Report.
WoW respectively in Europe, Turkey and North America. Prices were
mixed in China while they were flat WoW in CIS. Baoshan Iron and Steel,
had rolled over May prices after lifting them for five months in a row
due to uncertain demand conditions in China.
Indian steel prices showed marginal uptrend. TMT Mumbai prices
increased 0.9% WoW while Sponge iron prices increased 1% WoW. Pellet
prices were flat WoW.
Iron ore prices(63.5% Fe CFR China) increased 4% WoW to USD143/t due
to restocking by China . Coking coal prices (Premium Low vol, Fob
Australia) declined by USD2WoW to USD151/t.
Base metals price were stable, after witnessing significant downtrend
in past couple of weeks. Aluminium, Lead and Zinc prices were flat
WoW while Copper prices increased 2% WoW.
World steel association (WSA) has cut steel demand growth estimate by
90bps to 1.2% for CY12 and by 30bps to 2.9% for CY13 because EU27, CIS,
NAFTA and Middle East are now expected to grow slower.
Sanjay Jain
(SanjayJain@MotilalOswal.com); Tel:+91 22 3982 5412
15 April 2013
Pavas Pethia
(Pavas.Pethia@MotilalOswal.com); Tel:+91 22 3982 5413
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