Mumbai, Jan 9 : Favourable momentum for non-ferrous metal prices is likely to continue for the next 12-15 months, ratings agency ICRA said in a note.
Accordingly, the increase in prices is due to a steady turnaround in demand conditions, additionally, prices may have also been influenced by the ample liquidity in the global financial markets, the note said.
The international prices of aluminium, copper and zinc are currently up by 12 per cent, 28 per cent and 17 per cent, respectively, on a year-on-year basis and by 38, 70, and 47 per cent from their respective lows registered in March-April.
As per the ICRA note, the outbreak of the Covid-19 pandemic had severely impacted the global automobile, construction and electrical machinery industries, which together contribute 75-85 per cent to the global non-ferrous metal demand.
Consequently, in this period, consumption of these metals had contracted significantly, ranging from 3-4 per cent for copper and zinc; and upto 8 per cent for aluminium on a Y-o-Y basis.
However, the extent of contraction in demand has been lower than anticipated during the initial months of the pandemic, the note said.
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