Commodities
India's Non-Ferrous Metal Producers Set for Growth Amid Supply Constraints
Non-ferrous metal producers in India are expected to benefit from elevated metal prices and supply constraints, which have led to a 30-40% price rise across April-August. According to Icra, domestic demand for non-ferrous metals is set to increase by 8-9% in FY27.
The London Metal Exchange (LME) July prices were strong compared to June, while August saw LME spot prices for aluminium, copper, zinc, lead, and nickel all rise month-on-month. Inventories at the LME dropped for aluminium, copper, zinc, and lead, but rose for nickel.
The sector's operating margin is expected to expand by 400 basis points to around 35% due to higher metal prices. Hindustan Zinc sustained Ebitda margins of over 58%, driven by higher zinc and silver prices in Q1FY27.