back to top
OpinionsMetal firms see China re-opening as boost to commodities

Metal firms see China re-opening as boost to commodities


By Viveat Susan Pinto


The re-opening of the Chinese , as it moves away from its zero-Covid policy, could help stabilise commodity prices, according to some of the country's top metal companies.

They view this as a positive for demand, at a time when markets such as the US and Europe have been largely weighed down by slowdown concern now.

“Most of us in the metals are hoping the Chinese economy picks up because half of any metal demand, including demand for aluminium, comes from China.

“If it does, metal prices have an upside,” said Satish Pai, managing director, Hindalco.

On Tuesday, shares of metal companies, including Hindustan Zinc, Hindalco, Aluminium Company, Tata Steel, and Steel Authority of (SAIL), closed trade in the green on the BSE as sentiment remained positive in the sector.

The BSE Metal index, however, was marginally down 0.3 per cent versus the previous day's close amid a broader weakness in the market ahead of the release of the minutes of the latest US Federal Reserve meeting on Wednesday.

While the prices of base metals such as zinc, lead, nickel, aluminium, and copper are up 1.4-2.4 per cent versus the previous day's close as on February 20 on the London Metal Exchange (LME), commodities such as tin are down 1.6 per cent for the period, according to the data compiled by BS Research Bureau.

Year-to-date, the prices of zinc, aluminium, copper and zinc are up 3-7 per cent on the LME, while those of lead and nickel are down 10-14 per cent.

In a recent analysts' call, Vedanta CEO Sunil Duggal said: “The exit of the Chinese from their zero-Covid policy should help frontload investment in infrastructure and construction, which is a positive for global metals demand.”

Hindustan Zinc CEO Arun Misra said he saw the global consumption of zinc rising by 1.4 per cent year-on-year in CY2023 to nearly 14 million tonnes from 13.8 million tonnes reported the previous year.

“The rapid easing of Covid restrictions and slowing in US inflation have boosted the price of zinc. We hope this trend continues,” he said in a call with analysts.

In a recent conversation with Business Standard, Misra said India and China would be major consuming nations, thanks to an infrastructure push in these markets.

The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.


Please enter your comment!
Please enter your name here

Share post:


More like this

Labour Party’s first six steps for new Govt. Fall below the real demands

By Ben Chacko LONDON: Labour’s “six first steps,” the priority...

Lull in real estate market in China is restraining demand for steel in 2024

Will Beijing take stimulus measures to boost economy for...

Narendra Modi has added muscle power to foreign intelligence operations

India spy agency RAW is now flushing with big...

Media Relations – II

Er. Prabhat Kishore One technique in developing successful press releases...