Supply disarray due to Russia-Ukraine combat can be a golden opportunity for the Indian metal market

On 2^nd March 2022, the Indian stock market demonstrates the upward movement of the share prices of the Indian metal companies in a weak market, following the Russia Ukraine combat, which generated opportunities for the metal firms to boost their export, as imposed sanctions and intensifying ties with nations would hugely impact Russia’s overall trade.

However, on 1^st March 2022, EN+ Group International PJSC stated its UC Rusal Ltd. subsidiary has been forced to temporarily halt alumina production at the Nikolaev alumina refinery due to the war in Ukraine. The Russian aluminium company commented that although UC Rusal's alumina production will be severely curtailed in the short term at this site due to the logistical and transport challenges stemming from the conflict. Although, Rusal didn't expect this to impact the production of aluminium at its associated aluminium smelters.

The incompetence to export commodities from Russia has created a favourable moment for Indian metal producers to close the gap.

Russia alone with the European region account for around 10% of global primary aluminium supply, while Russia stands among the top steel exporters. Furthermore, Russia apparently supplies the world with around 10% of global nickel, which is used to manufacture stainless steel and batteries for EVs.

BALCO and Vedanta Aluminium, NALCO and Hindalco are the major aluminium producers in India. As a nation, India’s geographic location is far from the crisis, but the deepening war between the two neighbouring nations that produce commodities has significant consequences on the Indian economy.