DOMESTIC demand growth for nonferrous metals such as aluminium and copper is likely to remain at 10 per cent in the next financial year, Icra said on Friday. The apparent c o n s u m p t i o n growth for non-ferrous metals in the domestic market remained at 10-13 per cent in the first nine months of the ongoing fiscal supported by the Government’s push on infrastructure development and encouraging demand from renewables sectors and electric vehicles.

 

“While the demand is expected to remain soft over the next two quarters as Government spending moderates around the general elections, the overall demand growth is expected to remain comfortable at 10 per cent in FY24 and FY25,” Icra said in a statement. The operating margin of domestic players is also likely to remain stable at 17-17.5 per cent in FY25, like the levels estimated in FY24. Consequently, the rating agency maintains a stable outlook on the sector, it said. “Icra notes that the domestic eauction premia on coal had eased in recent months to 40 per cent in February 2024... The prices of caustic soda and calcined pet coke also moderated in the current fiscal,” it added.