India Ratings maintains negative outlook on base metals sector for H2 FY21

Agency says business disruptions led by Covid-19 likely to persist over next 6-9 months; realisations likely to remain volatile over H2 of FY21

India Ratings and Research (Ind-Ra) has maintained a negative outlook on the base metals sector for 2HFY21.

Business disruptions led by Covid-19 are likely to persist over the next six to nine months, as the pandemic scenario continues to evolve, it said.

Realisations are likely to remain volatile over second half of FY21 and remain predisposed to the US-China trade tensions.

As part of its study, the agency has covered the issuers operating in aluminium, copper and zinc sub-sectors and their likely credit profiles in FY21 and also outlines Ind-Ra’s expectations for FY22.