Copper Price Surge Set to Boost Non-Ferrous Stocks
Copper prices are expected to remain elevated due to rising demand from essential industries and limited supply growth, according to an Aditya Birla Capital report.
The report notes that a combination of factors such as new demand avenues, limited mine development projects, and delayed expansions will push the copper market into a prolonged deficit, supporting elevated prices.
As a result, non-ferrous equities like Hindustan Copper (HCP), National Aluminium Company Limited (NACL), Vedanta Aluminium Metal (VAML), Hindustan Zinc (HZ), and Vedanta Limited (VEDL) are likely to benefit from the situation.
The global metals and mining sector has seen a sharp growth over the past years, and the report believes that the cycle remains in its early stages.