Current Scenario for Base Metals

Current scenario for base metals is bullish and extremely positive for at-least next 3 years.

They are down from their all time highs made in 2021 and are currently taking the heat from dollar Index and risk off trade from US 10 year bond yields, having increased to 1.74%.

In our view, the rally in these metals have started from 2016 and with no significant new supplies coming in, prices and demand should remain elevated.

Its only when the commodity cycle and markets goes in frenzy that people start thinking about ramping up or setting up new facilities, which is not the case right now. This means better capacity utilization and higher realizations for investors and for companies.

We are bullish on base metals for the coming 2-3 years with specific bias on Copper and Nickel.