Commodities markets will recover next year after a spell of consolidation in 2016, Bloomberg quoted the chairman of Vedanta Resources Plc, India’s biggest metals producer, as saying.
“This year will be a settling-down time, in 2017 you’ll see things will be different,” Anil Agarwal told Bloomberg TV in Davos.
“Zinc will recover the fastest and aluminium will be next.”
Vedanta is India’s biggest producer of zinc, copper and aluminum, all of which have been hit badly by falling demand due to an economic slowdown in China.
Mining companies worldwide have been hammered by the slump in commodities with Glencore Plc and Anglo American Plc selling assets and cutting spending, and producers from Africa to China paring output, Bloomerg said.
“We’ll be better off than others because our costs are lower and we’re in a geographic location where there is demand,” Agarwal told Bloomberg TV.
Bloomberg said Agarwal was speaking after his group’s debt was put on review for possible downgrade by Moody’s Investors Service Vedanta shares have slumped more than 60 percent in London since mid-October to the lowest since at least 2003, it added.
The company has been cutting costs and has reduced overall expenditure by as much as 25 percent, he said.