Although demand in India has remained subdued, exports from the country surged to more than 50 per cent of revenues for most metals and mining companies in the June quarter.
Getty ImagesAluminium price on the London Metal Exchange (LME) touched $1732, rising by 21.3 per cent since the May low and by 9.4 per cent in a month.
ET Intelligence group: Shares of leading metal stocks including Hindalco, Hindustan Zinc, Tata Steel and SAIL each gained between 6 per cent and 9 per cent on Wednesday after rising demand from China and some parts of Europe drove international metal prices to six-month high levels.
Aluminium price on the London Metal Exchange (LME) touched $1732, rising by 21.3 per cent since the May low and by 9.4 per cent in a month. LME Zinc and copper made new highs as well gaining 15.6 per cent and 7.1 per cent respectively while China HRC prices gained 6 per cent over the past month.
“China’s recovery has taken everyone by surprise with indicators increasing progressively every month. All the downstream macro-indicators such a Le Keqiang index, real estate index and infrastructure index show an uptick since January 2020 lows,” said Amit Dixit, metals analyst with Edelweiss securities. Li Keqiang index is an economic measurement index created by The Economist to measure China's economy using three indicators-- electricity consumption, railway cargo volume and bank lending.
In Europe too, there are encouraging signs of demand uptick. Manufacturing PMI index for July was above 50 for the first time since January 2019.
These are positive developments for industrial metals. Although demand in India has remained subdued, exports from the country surged to more than 50 per cent of revenues for most metals and mining companies in the June quarter.
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