Easing covid curbs in China good for metals

The easing of covid norms and support by the Chinese government for its ailing property market have improved investor sentiment towards metal stocks. Rising consumption and demand in China, the largest consumer of commodities, is expected to drive global demand and prices for metals, said analysts.

Sentiments have improved significantly and metal prices have been rising, they added. "China has started to ease covid policy and support its ailing property sector. We believe the worst-margin quarter for the Indian steel sector, and the big chunk of earnings cuts for Tata Steel and Hindalco are behind," Jefferies India Pvt. Ltd analysts said in a recent report.

Through 2022, global metals demand outlook had weakened led by the Chinese real estate crisis and covid lockdown.

Furthermore, interest rate tightening measures by central banks worldwide had continued to increase recessionary concerns across developed markets.