Bullish momentum expected to sustain copper, zinc, and aluminium in medium term: Motilal Oswal
(source : ANI) ( Photo Credit : ani)
India’s base‑metal market is on a strong upward trend, says Motilal Oswal. The analysis points to copper, zinc and aluminium all looking set to stay on a growth path for the rest of fiscal year 2026.
The main drivers are tight global inventories, booming demand from the electrification wave and ongoing supply disruptions in key producer countries. A shift toward decarbonisation and digital technologies keeps copper especially bright.
Copper has jumped about 27 % year‑to‑date in India after the United States announced tariffs on imports. The higher price reflects a surge in demand from electric vehicles (EVs), AI, and the wider energy transition. An EV needs 25‑50 kg of copper, compared with just 8‑12 kg in a traditional car. The report projects EV sales to double to 2.2 million tonnes by 2030 from 1.2 million in 2025.
Zinc also had a big rally last month, topping $3,000 per tonne on the London Metal Exchange (LME) and up almost 9 % so far this year. Weak US dollar values and falling stocks helped the climb, and expectations that China will cut output added extra confidence.
Aluminium prices hit a six‑month high of more than $2,700 on the LME. The upside was sparked by a 50‑basis‑point rate cut from the US Federal Reserve that lifted overall commodity prices. China hit its production limit of 45 million tonnes, keeping LME supplies low. Inventories on both the LME and the Shanghai Futures Exchange are roughly half of the high seen in June 2024. China’s imports jumped 40 % year‑on‑year in 2025, driven by shipments from Russia, Indonesia and India.
Still, China’s industrial output fell by 5.2 % last quarter, and fixed‑asset investment rose only 0.5 % year‑on‑year, raising questions about future demand. The report notes that aluminium could stay in a trading range in the near term while fundamentals remain mixed.
Overall, Motilal Oswal’s outlook says the base‑metal sector, especially copper, is set for continued strength thanks to tightening stocks, electrification demand and supply-side disruptions.
Source: aninews
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