What is Citi’s Outlook on Metals After GST Rationalization?
Coal
Citi believes that GST rationalization will be marginally positive for end-users. The removal of compensation cess on coal is estimated to reduce aluminium production costs by 2–3%, directly benefiting Hindalco and Vedanta.
Aluminium
The outlook remains neutral in the near-term but bullish over the medium-term as demand dynamics are expected to strengthen.
Zinc
Citi maintains a bearish stance as rising global supply is likely to push the market into surplus.
Gold & Silver
Precious metals are expected to continue moving higher. Citi forecasts gold to march towards $3,600/oz and silver to reach $43/oz.
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
Tags: Citi on Metals, Aluminium Outlook, Coal GST Impact, Zinc Market, Gold Price Forecast, Silver Price Outlook, Hindalco, Vedanta
