The Asian steel market may hold up better in the future than in other parts of the world although demand could be further
dampened by a weak economic outlook, says OSK Research Sdn Bhd.
The research firm also expected long steel producers to fare better as governments worldwide cannot avoid carrying out some pump-priming activities, which could help spur demand for long steel.
"On the local front, steel mills are waiting with bated breath the rollout of "mega" government projects under the Economic Transformation Programme which is expected to boost steel demand.
"However, concerns still linger over its smooth and successful execution," it said in a statement today.
OSK recently revised lower some of its estimates due to the global economy sluggishness.
"We are trimming our fair values across the board as the steel stocks currently offer limited price upside.
"We are "neutral" on most counters except Perwaja and Kinsteel, on which we add on a 10 per cent discounted cash flow valuation on their potential in securing the iron ore mine as well as our "buy" and "trading buy" recommendations, respectively," it added. -- BERNAMA
dampened by a weak economic outlook, says OSK Research Sdn Bhd.
The research firm also expected long steel producers to fare better as governments worldwide cannot avoid carrying out some pump-priming activities, which could help spur demand for long steel.
"On the local front, steel mills are waiting with bated breath the rollout of "mega" government projects under the Economic Transformation Programme which is expected to boost steel demand.
"However, concerns still linger over its smooth and successful execution," it said in a statement today.
OSK recently revised lower some of its estimates due to the global economy sluggishness.
"We are trimming our fair values across the board as the steel stocks currently offer limited price upside.
"We are "neutral" on most counters except Perwaja and Kinsteel, on which we add on a 10 per cent discounted cash flow valuation on their potential in securing the iron ore mine as well as our "buy" and "trading buy" recommendations, respectively," it added. -- BERNAMA
