Aluminium, copper prices to remain soft in near-term: ICRA

Prices of aluminium, copper and other non-ferrous metals may remain soft in the near-term as a result of muted demand on the back of uncertain macro-economic environment prevailing globally, rating agency ICRA said.
"While prospects for the western economies have improved, concerns regarding slower growth of Chinese economy, largest consumer of base metals, have affected sentiments, leading to subdued price levels at the London Metal Exchange (LME)," ICRA's Senior Vice-President Jayanta Roy said in a release.
The Indian story would be similar as base metal prices in the country are influenced by the import-parity prices, though movement of the Indian rupee against the US dollar would also have a critical impact on domestic prices going forward.

On aluminium, he said despite a better consumption growth rate of 5.27 in the second half 2013 compared to 4 per cent in the second half, prices of the metal at the LME have continued to remain under pressure on substantial inventory globally.
A demand-supply deficit due to capacity curtailment of around two million tonnes during the last two quarters of 2013 could not saved the day for aluminium.
"Tepid demand conditions in 2013 and higher mine output led to monthly LME copper prices remaining lower than the corresponding months of the previous year," Roy said.
In the current year, LME copper prices are further down, reflecting concerns regarding the strength of Chinese consumption in the near-term.

The international zinc market too is expected to remain in surplus in the near-term, amidst subdued demand growth, which is likely to result in zinc prices remaining soft, he said.