It is incredible to see world strongest currency to look on lowering trend and making huge impact on all sectors of economy worldwide including metal and ore segments. Metal and mining stocks have been under hibernation from quite long time and have not been able to revive before the coming of last three months where these sectors are booming in rocket speed. Mohit Aggarwal, Aastha Group enumerates about the industry gains by stating examples of AKS Steel which has managed to pool in 162 percent, United States Steel enthralling 173 percent and SPDR S&P Metals and Mining ETF making a profit of 91 percent.
Aastha Group rules out three reasons for such extension where weakening of Dollar Value is pertinent due to which American Metal producers are banking on foreign upper crusters, secondly improvement in China’ industrial sector and lastly equilibrium in our country in relation to firming of prices for some metal products. Illustratively, AKS Steel has announced two price increases in recent months.
There is mix word prevalent in the market with reference to future of these stocks as few opines glittering town for the stocks that participate in the rally as they are trading well above their 50-day and 200-day moving averages, while others are of the contrary view, due to negative operating margins and declining revenues of the engaged companies like both AKS Steel and US Steel which continue to suffer on these grounds per usual.