Metal stocks have seen a huge jump. NIFTY METAL INDEX jumped around 9% in 2 sessions. At the same time, HINDALCO has reached a new peak by jumping 27% this year. VEDANTA is also trading at a 52-week high. Record aluminum prices have also fueled the rally in the metal index. The price of this aluminum has reached a record high. The price of zinc has reached a high of 16 years while the price of nickel has reached a high of 11 years. At the same time, coal prices are trading at an 8-month high.
Base metals ran out of rust
According to the report of CNBC-AWAAZ, if we look at the movement of aluminum, it has seen a rise of 3.59% in a week, 11.50% in 1 month. At the same time, so far this year, it has seen a jump of 23.88%. If we look at the movement of zinc, it has seen a rise of 3.44% in a week, 2.23% in 1 month. At the same time, so far this year, it has seen a jump of 6%.
Looking at the movement of Nickel, it has seen a rise of 3.05% in a week, 8.75% in 1 month. At the same time, so far this year, it has seen a jump of 20.94%. If we look at the movement of copper, it has seen a rise of 1.91% in one week, 3.97% in 1 month. At the same time, so far this year, it has seen a jump of 3.51%.
Know for which companies the Russia-Ukraine crisis is a disaster and for which companies there is an opportunity – CNBC-AWAAZ REPORT
How will steel move on Russia-Ukraine crisis
JP MORGAN’s opinion on STEEL
JP MORGAN, expressing his opinion on STEEL, said that Russia was the largest steel exporter in 2020 while Ukraine was the fourth largest steel exporter. Further, if production in China does not increase, steel prices will increase. Russia’s share in global steel exports is close to 11%. Russia currently exports 26.4MT of steel. At the same time, Ukraine’s share in global steel exports is close to 6%. Domestic and export prices are expected to rise due to this crisis. However, margin improvement is possible due to higher prices.
NOMURA’s opinion on STEEL
NOMURA, expressing its opinion on STEEL, said that due to the Russia-Ukraine crisis, problems in steel exports are possible. This is expected to affect the steel production of the EU as well. However, during this period, Indian companies also have an opportunity to increase exports. Let us tell you that Russia-Ukraine has an 11% stake in global steel exports. On the other hand, due to reduction in supply, there is a possibility of increase in cooking coal prices. On the other hand, rising cooking coal prices will increase the cost of Indian companies.
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