Sahaviriya, Thai Mills Rise on Steel Prices Optimism
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 email@example.com.
To contact the editor responsible for this story: Linus Chua at firstname.lastname@example.org.
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.