June 6 (Punjab Khabarnama) : The demand for non-ferrous metals, including copper and aluminium, is expected to be around 10 per cent in the current financial year 2024-25, which is much higher than the expected growth of two per cent in global demand. According to rating agency ICRA, in addition, the reduction in the price of coal is also likely to reduce the pressure on the cost of raw materials to some extent.
The agency said in a statement, “On the domestic front, the demand for non-ferrous metals is expected to be around 10 per cent in FY 2024-25, which is much higher than the expected growth of about two per cent in global demand.” ICRA said, “The domestic e-auction premium on coal has been reduced in recent months. It was around 50 per cent in April 2024, which was at a high level of around 150 per cent in the same period last year.”
The rating agency said that it expects that strong metal prices and favorable cost of raw materials in FY 2024-25 may increase the profitability of domestic non-ferrous metal units. Girish Kumar Kadam, Senior Vice President, ICRA, said, “With the cost of raw materials remaining largely under control and good growth in realisation, the operating profit of domestic entities is expected to increase to around 23 per cent in FY 2024-25 as compared to around 17 per cent in FY 2023-24.”