Metal stocks rally up to 14% on China demand
Shares of metal giants Vedanta and Hindustan Copper surged by 4% on BSE to Rs 410.45 and Rs 372.25, respectively, while Hindustan Zinc saw a remarkable 14% leap to a new 52-week high of Rs 520. The surge is attributed to heightened demand from China, a major player in the global metal market.
Shares of metal players, and surged 4% today on BSE to Rs 410.45 and Rs 372.25, respectively while jumped 14% to its new 52-week high of Rs 520 due to a significant surge in demand coming from China, a major player in the .Apart from a surge in China’s demand, geopolitical concerns in regions like Southeast Asia and Russia have restrained the supply of certain metals, which have further driven up the prices. The boost in India’s infrastructure and manufacturing sectors along with a shift towards is also contributing to an increased demand for metals.
“The current strong demand, particularly from China, may continue in the first half of the year but could potentially slow down around June,” said Sonam Srivastava, Founder & CEO of in a conversation with .
The Indian metal sector tends to follow global price trends. While earnings from metal companies may not have been exceptional, the future seems promising. Non-ferrous segments are performing better than ferrous metals.
“Vedanta is another superlative play. Today, look across the board, bauxite, nickel, copper, all trending towards new highs and I think the biggest play over here is Vedanta. The demerger of the six companies will happen by the end of the year; I have a target of 750. So, do not miss this opportunity,” said Sanjiv Bhasin, Director, .
Chairman of , also recently wrote on his social media handle how metals are no less than gold while stating “Aap sab ne dekha hoga, the price of gold is at an all-time high. Yeh cycle hai. From my long experience, I have seen investors rush for gold at times of geopolitical and global economic uncertainty. But the really amazing, less noticed story is actually emerging in metals like copper, aluminium, zinc and silver, all of which are critical minerals”.
“What also stands out is that these are green metals. They support a climate-friendly world. They are recyclable. And using the latest technology, they can be mined without damaging the environment. Demand for all of these is growing at double digits, much faster than supply,” he added.
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Source: Stocks-Markets-Economic Times
