1 day ago
Analysts See Metals Stocks Benefiting From Elevated Copper Prices
Copper is an important metal used by many industries.
An Aditya Birla Capital report says demand for copper is rising, while new supplies may be limited.
The report expects these conditions to keep copper prices high for a long time.
It says some companies that produce non-ferrous metals could benefit.
These include Hindustan Copper, NALCO, Vedanta and Hindustan Zinc.
The report also says some companies are building capabilities in rare earths and other crucial minerals.
However, the shares of several named companies fell on the Thursday described in the article.
Their returns over longer periods differed from company to company.
An Aditya Birla Capital report says limited mine supply and rising strategic demand could keep copper prices elevated over the long term.
The report expects non-ferrous companies, including Hindustan Copper, NALCO, Vedanta and Hindustan Zinc, to benefit as the metals cycle broadens.
It says new demand avenues, limited mine projects and delayed expansions could prolong a copper-market deficit.
The brokerage describes the global metals and mining cycle as being in its early stages and cites companies building capabilities in rare earths and crucial minerals.
On Thursday, October 1, NALCO, Hindustan Copper, Vedanta Aluminium Metal and Hindustan Zinc all closed lower, despite their varied longer-term share returns.
- Who
- Aditya Birla Capital analysts and non-ferrous companies including Hindustan Copper, NALCO, Vedanta and Hindustan Zinc.
- What
- A brokerage report said limited supply growth and rising strategic demand could support elevated copper prices and benefit some metal stocks.
- Where
- The share-price figures cited are from the BSE.
- When
- The article reports share prices at Thursday's close on October 1; the year is not specified.
- Why
- The report cites rising demand, limited new mine supply, delayed expansions and increased focus on supply-chain security.
Key facts
- Source
- Aditya Birla Capital report
- Copper outlook
- The report expects copper prices to remain elevated, citing limited supply growth and rising demand.
- NALCO close
- ₹334.15, down 2.38% on Thursday, October 1
- Hindustan Copper close
- ₹461.95, down 2.28% on Thursday
- Vedanta Aluminium Metal close
- ₹402.85, down 2.46% on Thursday; down 10.87% over three months
- Hindustan Zinc close
- ₹556.85, down 1.49% on Thursday
- NALCO reported returns
- 55% over one year, 49% over two years and 243% over three years
- Hindustan Copper reported returns
- 37% over one year, 32% over two years and 184% over three years
Quotes
Aditya Birla Capital brokerage
Brokerage issuing views on non-ferrous stocks.
“A combination of limited new mine supply, rising strategic demand, and increasing focus on supply chain security is creating a commodity cycle which is different from the traditional demand-led cycles, in our view”
livemint.com
“We expect non-ferrous equities to benefit as the cycle broadens in scope, particularly stocks like HCP, NACL, VAML, HZ, VEDL (Not Rated) which have varying degrees of exposure to various industrial metals.”
livemint.com
Sources
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