Worst is over for commodities says Vedanta

The worst seems to be over for the commodities market, provided there are no "negative surprises" from China, Vedanta Resources CEO Tom Albanese said. Vedanta is one of the largest commodity companies in India.

"In my view, provided we don't see any negative surprises coming out of China, the worst should be over for commodities," Albanese told PTI in Panaji, Goa.

Over the past several months, there has been rebound in commodity pricing, he said. "That rebound corresponded with the slightly improving Chinese economy. In addition, during that period, US dollar has weakened a bit. Two macro factors have probably reduced the negative sentiments that have been there for commodities.

 "We have seen some tightening in supply demand characteristics. It is most evident in zinc, where we have seen a reduction of zinc mines around the world and reduction in treatment charges, which indicate there are more buyers and sellers for zinc right now. So we see increase in zinc pricing," he said. He said the situation was similar in the copper segment as well.

"Some stockpiles have been reducing and we have seen Chinese buying copper whenever prices drop low."