India Metals, Mining Q3 Results Preview - China Reopening, Record Deficits To Drive Outperformance: Systematix

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.The recent reopening in China post extensive lockdowns over last three years have caused metal prices to resurge in last three months, amid record-low inventories at exchanges. China’s pole position across metals is unlikely to change in the near term. Also, gross domestic product forecasts of more than 4% growth for CY23/24 implies continued rise in near-term demand (Source: International Monetary Fund). China’s steel production declined marginally by 5% in CY21/22, and is slated to rise by more than 5% in CY23 tracking historic GDP growth rates. Aluminium production growth was steady at 13% in CY22 over CY19, implying a gradual rise in preference for the metal. Lead and zinc metals are forecast to remain in deficit, with demand in excess of mine production for CY23/24, according to the International Lead and Zinc Study Group . Over the last one month/three months, the BSE metal index recorded up 5/up 15% performance versus down 4%/up 5% by the Sensex. We expect the significant outperformance in the sector to continue due to supply-side constraints, low inventory in the system, and inexpensive valuations..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India Metals, Mining Q3 Results Preview - China Reopening, Record Deficits To Drive Outperformance: Systematix

We expect significant outperformance to continue due to supply-side constraints, low inventory in system, inexpensive valuations.

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