Base Metal Pries Rise.
The base metal prisles on the london metal exchange, or the lme, are waiting. Among key factors that are leading to the risk are expectations of a rate cut in the us, leading to a pickup in economic activities. Among others, the geopolitical tensions leading to supply chain disrupt and the weighting of the dollar index, or a weaker dollar, are fueling the risk in the base metal priced, as per analysts. The Progress on Trade Talks Between China and the US Further Adds to Optimism Among Investors. A pickup in china’s demand is lookd at in a positive light, with china being the largest consumer of commodities.
Meanwhile, geopolitical stress also means Higher Defense Outlays for many regions in the world, and the same means higher consumption of all metals.
Even a 12% safeguard duty, imposed by the government recent on certain steel imports for 200 days to protect domestic steel manufacturers from important surges, hence respectives positive for domatic for domatic Manufacturers. The monsoons may impact steel prices in the near term; However, Softer Input Pries May Cushion The Impact
Firm domestic metal demand principles.
The demand in India is Rising, LED by Strong Domestic Growth. The infrastructure activities keep the demand for metals strong in the country. In addition, even the pickup in defense manufacturing is also aiding growth for metal demand.
The metal sector has alredy started seeing a rally Driven by Various Factors, Said Ajit Bnerjee, President and Chief Investment Officer, Shriram Life Insurance.
The Safeguard Duty Announced by the government has provided a much-needed guardrail sought by the industry, while benign raw material prices have helped in margin protected in the road Earnings of the companies, as per bnerjee.
In view of the trade- and tariff-Related Talks Between China and the us, expected to get concluded favorably to both the nations, will benefit the Indian metal sector SECTOR SECTOR SICTOR SITEREFICANTLY, PONTED OUT BANERJEE Apart from this, a pickup in the government and private sector Capex in this Financial Year Augurs Well for the Metal Sector. With the fears of Global Recension Rece othering and Trade Negotiations Between the us and its Major Trading Nations Ending on a positive tone, it will bode well for the metal sector of India, Said Bannerjee.
The Demand Scenario for Non-Ferrous Metals is expected to improve with declining lme warehouse stocks, higher defense outlays in Europe, and A Recovery in the Chinese Economy, Said Antique Stock Broking. Steady Crude derivatives, Weaker Caustic Soda Prisies, and Stable Thermal Coal Costs will Aid Indian Non-Ferrous Companies, as Per Anatique.
Goldman Sachs Raises Its Lme Price Forecast for Copper during H2
Goldman Sachs Has Upgraded Their 2H 2025 Copper Price Forecast to $ 9,890 per ton from $ 9,140 previous, meaning that they expect the price on the price Over the next two months, Goldman Sachs Expects Lme Copper Price to Rise, Peaking for the Year at $ 10,050 in August, Before Falling.
The Increase in Outlook Has Been Led By the Ongoing Us Section 232 copper Investigation. This, as per goldman sachs, have continued to cause significant dislocation Between lme (UK) and COMEX (US) Copper Pries. Significant over-primes of copper into the US have caused fears of a shortage in the rest of the world, despite the global market being in Surplus, and have resulted in a blow-ticket.
Analysts Expects Demand Scenario for non-ferrous metals to improve
Analysts at Antique Stock Broking Said That “Spot Non-Ferrous Metal Prisies (Except Zinc) Have Strengthed 1%-5%. Month on Month (As Well as on a Six-Month and Year- On-IE-on-on-on-on Ongoing tensions in the middle east as fears of supply chain disrupt, lower lime inventory levels, and a weaker dollar index aid syntimet. Current Level of Close to 98.
Antique maintains a boy rating on Hindalco and National Aluminum Company (NALCO) and Hold Ratings on Vedanta and Hindustan Zinc.
Disclaimer: The views and recommendations made about individual analysts or broking companies and not of mint. We Advise Investors to Check With Certified Experts Before Making Any Investments Decisions.
Discover more from gautamkalal.com
Subscribe to get the latest posts sent to your email.