Existing portfolio of base metals sector portrays stable outlook: India Ratings

India Ratings and Research (Ind-Ra) Wednesday announced that it has maintained a stable outlook on the base metals for the next financial year. "Ind-Ra expects the ratings of sector companies to remain stable during FY20, as reflected in the stable outlook on the existing portfolio," it said in a statement.

Within the sector, domestic aluminium prices are expected to remain stable, despite a likely decline in demand, while zinc prices may taper off because of an increase in global supply, it said. "Also, copper prices could stabilise, after a price correction during 2H18," it added.

Major issuers, it said, are likely to post healthy profit margins, on the back of a steady volume ramp-up and cost deflation, countered by lower average realisations. Ind-Ra said it expects global aluminium prices to remain steady in 2019-20, it added.