Street betting on revival of metals cycle amid buzz of over-correction

High input costs leading to margin pressure, lower-than-expected realisations are among downside risks

The metals market has seen extreme volatility in the last few months. Part of this is due to supply concerns as Russia and Ukraine are big players. There are also fears of demand destruction as China has gone into lockdowns and global growth projections have been pared.

The metals market corrected by 15 per cent since mid-April, with individual shares down by 10-30 per cent. However, the market may have over-corrected. On Tuesday, there was a surge in the share prices of Hindalco and Vedanta – both big players in the non-ferrous market in the hopes of demand revival from