Metals are expected to benefit with rising automobile sector in India. The country's automobile sector is expected to grow between 1-15% in 2011-12 with good economic forecast, higher disposable income and increasing rural demand, according to Pawan Goenka, President of Society of Indian Automobile Manufacturers (SIAM).
Metal prices were low in recent weeks due to Japan tsunami and Chinese monetary tightening measures. Global economic growth will sustain industrial metals demand. Lead has advanced to the highest level in three years and aluminium has reached the highest level since Septmber 2008.
Apart from India, positive reports regarding passenger car sales have also emerged from USA in recent months boosting the prospects metals industry. India's passenger vehicles segment grew at 29.85 percent during April-February 2011 over same period last year.
Mr Goenka said that the India government's decision not to increase excise duty on cars in budget will further help growth in the sector.