The escalating trade tensions between the U.S. and China would be detrimental for demand for metals, according to Paul Bartholomew, senior managing editor for S&P Global Platts.
The impact would be visible not only in key markets such as China, but also lead to a slowdown in metals sector across the globe, Bartholomew told BloombergQuint in an interaction.
Edelweiss' Research Analyst Amit Dixit agreed. He expects the trade uncertainty to directly impact raw material prices, citing the eight-week decline in domestic prices of hot-rolled coil.
Yet, Dixit prefers investing in the ferrous space over the non-ferrous space. “When price doesn't support, go for stocks where volume uptick is there.”
Dixit is bullish on Jindal Steel and Power Ltd., Hindalco Industries Ltd. and Coal India Ltd.
Watch the full interview here:
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