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Goldman Sachs Analysts Favor Steel Stocks to Non-Ferrous Metals in China

Goldman Sachs Group Inc. said it favors Chinese steel companies to non-ferrous metal producers, given the outlook for product prices amid production cuts spurred by the nation’s efforts to reduce energy consumption.

The brokerage raised its rating for Maanshan Iron and Steel Co. to “buy” from “neutral” and for Shanxi Taigang Stainless Steel Co. to “buy” from “sell,” according to a report by Jim Hung and Rowena Chang. They also raised Jiangxi Copper Co.’s recommendation to “neutral” from “sell.” The analysts lowered Angang Steel Co., China Molybdenum Co. and Jinduicheng Molybdenum Co. to “neutral” from “buy” and cut Jilin Ji En Nickel Industry Co. to “sell” from “neutral.”

To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net

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

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