Metal stocks could correct soon but remain a medium-term buying opportunity

All the base metal stocks could see deeper corrections, but a strong global economy may make this a medium-term buying opportunity

The boom in industrial metals has run into a roadblock that is hard to assess. As activity resumes across the globe, the demand for steel, copper, zinc, aluminium, tin, etc., has shot up. Since supply chains have also been disrupted, this led to a big rise in prices.

This week, the world’s largest consumer, China, announced it would pull prices down by releasing some of its reserves of copper, aluminium and zinc, etc. It had already imposed price controls on iron ore. In the last year, copper has more than doubled to record highs, and aluminium and zinc at 10-year-highs.