Legendary metal stocks like Vedanta, Hindalco and Nalco saw a strong rebound this week. The shares of these companies recorded a strength of 4 percent to 13 percent. Nalco benefited the most, while Vedanta also jumped more than 7 percent. This week brought relief for investors, but experts are still not completely confident.
America-China tariff conversation increased expectations
The biggest reason behind this fast of metal market is the ongoing conversation between America and China regarding tariffs. China is the largest commodity consumer in the world and when positive indications are received from there, the stir in the global metal market also intensifies. Investors hope that if there is an agreement on tariff, then both metal demand and price can improve.
Recovery in Aluminum and Copper prices
In the first week of April 2025, aluminum prices on London Metal Exchange (LM) fell below $ 2300 per tonne. The reason for this was the decline in demand due to Trump tariff. But now aluminum prices have reached $ 2475 per tonne. However, these are still below the summit of $ 2700+ per ton of March 2025. Similarly, copper prices have also increased from $ 8600 per tonne to $ 9475 per ton. This fast has come due to the positive atmosphere on tariffs.
what are you saying expert
According to the report of Motilal Oswal Financial Services, the metal market is still struggling with many contradictions. On the one hand, the possibility of supply surplus (additional supply) is being expressed in most metals, on the other hand global demand seems to be weakening. Along with this, the uncertainty of US-China tariff conversation has made the market alert.
Experts say that positivity from tariff deal is only temporary relief. The strength of the dollar can become a new risk for metal prices. However, the recently announced tariffs are not as serious as there was a possibility, but they still remain a big challenge for global trade.
Invest thoughtfully
According to the report, copper prices may remain between $ 9000 to $ 10200 per tonne and it is likely to continue fluctuating. The market uncertainty shows that investors should currently adopt a cautious and informed strategy. Hasis decisions may be risky.
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