Sector Update - Metal - ICICI Direct

The Russia Ukraine conflict has provided traction to global metal prices. During YTD CY22, a healthy rally has been witnessed in both ferrous and non-ferrous metals. During YTD CY22 (January 1-March 10, 2022), aluminium prices on the LME increased by ~21% to US$3409/tonne. On the ferrous front, during the above mentioned period, Chinese HRC export price increased by 13% YTDCY22 to US$855/tonne, domestic HRC price have increased by 9% YTDCY22 to Rs. 69500/tonne and domestic CRC prices increased 16% YTDCY22 to Rs. 80500/tonne. Going forward, we believe supply fears on the back of current geopolitical scenario coupled with rising input costs is likely to support a further uptick in metal prices.

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Source : Equity Bulls

Keywords

SectorUpdate Metals ICICIDirect Aluminium HRC Steel