Basic Materials Roundup: Market Talk

The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET. 1408 ET - Sigma Lithium appears better able to navigate its current liquidity crunch and return to normal operations, Bank of America analysts say. The producer of battery lithium announced a $50 million prepayment, expected to be dispersed in the second quarter, which the analyst say will provide near-term liquidity. They believe this will help Sigma Lithium speed up its Phase 2 spending. Long-term deliveries also signal counterparty confidence in Sigma Lithium's ability to mine with new subcontractors, the analysts say. That could open the door to more prepayments, they say. The analysts upgrade the stock to buy. (katherine.hamilton@wsj.com) 0108 ET - APL Apollo Tubes stands to benefit from its deep distribution network in India, HDFC Securities analysts say in a research report. This network comprises over 800 distributors, more than 50,000 retailers and over 200,000 fabricators, and extends across roughly 300 towns and cities, which creates a formidable competitive moat, the analysts say. The company has expanded its portfolio to over 5,000 products, which enhances distributor stickiness and broadens addressable applications. The company operates 11 manufacturing facilities across India, enabling most orders to be serviced within around two days, a key differentiator versus peers. The brokerage initiates coverage of the stock with an add rating and a target price of 2,070.00 rupees. Shares last closed at 1,895.65 rupees. (ronnie.harui@wsj.com) 0001 ET - Posco Holdings' 1Q earnings could fall short of expectations due to weak steel demand, Hana Securities analyst Park Seong-bong says. The South Korean steelmaker could post 572 billion won in operating profit for the January-March period, below a market consensus forecast of 606 billion won, Park writes in a note. Posco's sales of steel products likely fell 1.7% on year to 8.01 million metric tons in 1Q, he notes. Higher iron-ore and other raw-material costs likely led to weak spreads in 1Q, he says. However, Posco could see its construction affiliate return to profit, while its trading and battery-material units will likely report improved earnings, he adds. (kwanwoo.jun@wsj.com)