Metal stocks falter as China's stimulus fix disappoints; Nifty Metal worst hit sectoral index

China's underwhelming stimulus plans also led to a decline in iron ore prices, which dropped by more than 2 percent.

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26 Aug, 2025 12:21

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Shares of metal manufacturers faced selling pressure on November 11 as China's latest stimulus measures failed to meet investor expectations, yet again. This further dampened hopes for a significant recovery in the country's struggling property sector, which is a key driver of metal demand for the world's largest importer.

China's underwhelming stimulus plans also led to a decline in iron ore prices, which dropped by more than 2 percent, approaching $100 per ton. This followed the Chinese government's announcement of a debt-swap plan, but it fell short of implementing measures to directly boost domestic demand, particularly in the struggling property sector.

The steel-making staple has fallen by over a quarter this year, weighed down by China's property slump and signs that miners are ramping up production. With mills in China facing challenges in selling steel domestically due to weak demand, exports of the alloy soared to their highest level since 2015 last month, further adding pressure on the global steel prices.

Bogged down by this, names like NMDC, MOIL and NALCO fell 1-2 percent, turning out to be the worst hit on the Nifty Metal index. The sectoral index was also down half a percent.

Other metal stocks like Tata Steel, SAIL, Jindal Steel and Power, Hindustan Zinc, JSW Steel and Vedanta also struggled with losses.

Meanwhile, the dollar index has also been on uptick since the return of Donald Trump as US President, which has added pressure on metal prices for non-dollar denominated importers.