Sahaviriya, Thai Mills Rise on Steel Prices Optimism

Sahaviriya Steel Industries Pcl (SSI), Thailand’s biggest maker of hot-rolled steel, led gains among steelmakers in Bangkok trading on expectation higher prices of the metal will boost earnings.

Sahaviriya jumped 13 percent to close at 0.88 baht, the highest since Sept. 15. The stock was the third-biggest gainer in 473-member SET Index (SET), which dropped 1.9 percent. G Steel Pcl (GSTEEL), the second-biggest maker of hot-rolled steel, gained 5.1 percent to 0.41 baht, the highest since June 17. Asia Metal Pcl (AMC) rose 3.5 percent to 1.2 baht.

China is the biggest export market for Sahaviriya and many Thai steelmakers. Prices for hot-rolled steel in China, the world’s biggest steel producer, rose 21 percent since April 1, according to data compiled by Bloomberg.

“The steel earnings outlooks are improving with the rise in global steel prices,” Adisak Prombun, an analyst at Trinity Securities Ltd. in Bangkok, who has “buy” rating on Sahaviriya. “Their profit margins will widen.”

Win Viriyaprapaikit, Sahaviriya’s president, didn’t answer calls to his mobile phone.

To contact the reporter on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net.

To contact the editor responsible for this story: Linus Chua at lchua@bloomberg.net.

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