What Is Driving Non-Ferrous Metal Prices Higher Amid Global Supply Tightness?
Antique has released a note on non-ferrous metals, highlighting multiple global and domestic factors that are influencing prices and investor sentiment. The report emphasizes how geopolitics, lower inventories, and a weaker dollar index are tightening supply while domestic GST reforms are set to spur demand.
About Antique’s View On Non-Ferrous Metals
Antique believes that the demand outlook for non-ferrous metals remains strong. Low LME warehouse stocks, increased defence spending in Europe, and structural supply-side risks are pushing prices upward. These dynamics are reshaping how investors should position themselves in aluminium, copper, and zinc stocks.
Key Global Drivers
Several international developments are weighing on supply and prices:
- China’s 45 mtpa aluminium production cap limits growth in global output.
- Potential shutdown of South32’s Mozambique smelter raises supply risks.
- Guinea’s revocation of the mining concession from Guinea Alumina Corporation impacts raw material availability.
Domestic Policy Support
On the domestic front, the Government of India’s GST 2.0 reforms are expected to provide a meaningful boost to consumption. By cutting GST on aluminium and copper household items from 12% to 5%, affordability improves and usage is set to expand.
For traders looking for short-term market strategies, here’s something worth checking out:
Stock Recommendations
- NALCO – BUY | Target Price ₹262
- Vedanta – HOLD | Target Price ₹482
- Hindustan Zinc – HOLD | Target Price ₹482
- Hindalco – HOLD (downgraded from BUY) | Target Price ₹766, as the recent stock rally leaves limited upside
Investor Takeaway
The non-ferrous sector is entering a period of tighter supply and supportive domestic demand. Aluminium and copper look well placed with GST cuts, while zinc and other base metals remain range-bound. Investors can consider selective exposure, with Antique’s top pick being NALCO.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services
