Indian non-ferrous metals: Can they survive the COVID-19 led price collapse?
April 13, 2020 / 11:56 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
- Coronavirus threatens to drag global economy into recession
- Global non-ferrous metal prices suffer huge blow led by lower demand expectations
- Aluminium prices breach 2008-09 level; drag majority of world production below cost
- Copper and zinc too suffer, and threat of companies resorting to production cut looms
If you invest in cyclicals you have to be right twice - to get in when the cycle is in an upturn and get out well before it starts to decelerate. Globally, non-ferrous metals...