Tepid base metal prices on LME may play spoilsport for Vedanta stock

Volatility in base metal prices on the London Metal Exchange due to trade war concerns may keep Street cautious on Vedanta stock

Vedanta’s March quarter (Q4) results faced the heat of decline in base metal prices yet again — the key reason for its results not meeting revenue estimates.

Lower zinc output and production disruption in the Tuticorin copper smelter also hit the firm, though depreciation in the rupee, coupled with contribution from the newly acquired steel business mitigated the impact to some extent. 

Aluminium prices on the London Metal Exchange (LME) averaged about 14 per cent lower year-on-year (YoY) in Q4, and 6 per cent lower sequentially.  Zinc, lead, and copper prices, too, averaged 11-21 per cent lower YoY, though they rebounded 3-4