Indian metal industry could reap benefits from Russia-Ukraine war: Analysts
Category: #headlines  | By Nikita Chaurasia  | Date: 2022-03-07 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

Indian metal industry could reap benefits from Russia-Ukraine war: Analysts

While the rest of universe anticipates adverse impact of the recent Russian invasion of Ukraine, analysts believe that somehow Indian metal companies stand to gain from the conflict.

Russia was levied with harsh sanctions from major economic leaders for invading sovereignty of Ukraine, threatening the country’s commodity exports such as aluminium and steel.

Last year, the country reported aluminium production of nearly 3.9 metric tonnes which makes Russia responsible for 6% of the total global supply, whereas Russia and Ukraine, together, make up for 10% of world supply of steel.

It has been reported that ever since the geopolitical tensions escalated between Russia and Ukraine, prices of the most prominently used base metal in the world – Aluminium – has revived over the past few weeks.

Currently, the global aluminium market is fearing a breakeven point as it lags due to production cuts all across Europe with highly volatile energy prices and a stringent supply from China.

Unfortunately, the world may have to witness an additional surge in aluminium prices if the supply chain disruption continues as a result of sanctions imposed on Russia by the U.S. and other allies.

Meanwhile, as a ripple effect of supply chain restrictions, countries will incline towards alternative sourcing making Indian metal companies the potential suppliers.

For instance, higher LME costs will benefit Indian aluminium producers such as National Aluminum Co., Hindalco, and Vedanta.

Moreover, considering the potential disruption across EU countries and fallout due to shortage in supply of gas in surging costs of Russian imports, Indian steel mills could gain significantly as European counterpart start looking for alternate suppliers.

Credible sources have cited a potential change in import-export relations, anticipating a new alliance between Turkey and India as the former may increase reliance on India to meet surging demand.

Source Credit: https://www.bloombergquint.com/business/how-russia-ukraine-crisis-may-aid-indian-metal-companies

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia     twitter

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More..

More News By Nikita Chaurasia

Fintech firm PayPal to shed around 2000 staff as global economy plummets

Fintech firm PayPal to shed around 2000 staff as global economy plummets

By Nikita Chaurasia

PayPal, the U.S.-based fintech giant, has reportedly announced that it will cut nearly 2000 jobs, approximately 7% of its workforce, as it turns the latest prominent tech company to shed staff in a bid to cut costs. The online payments provider cl...

EasyJet sees a rise in bookings as customers plan their next vacations

EasyJet sees a rise in bookings as customers plan their next vacations

By Nikita Chaurasia

British multinational low-cost airline group, EasyJet, has reported a record surge in bookings for the month of January as people prioritized their travel plans for the coming year. The news comes as airlines world over start to show signs that they&...

Dr. Reddy’s becomes India’s second biggest drugmaker by sales

Dr. Reddy’s becomes India’s second biggest drugmaker by sales

By Nikita Chaurasia

Dr. Reddy's Laboratories Ltd. and Cipla Ltd. surpassed Aurobindo Pharma to rank as the 2nd and 3rd largest drug manufacturers in India by sales in the three months that ended on September 30. This was the first change in the pecking order of the ...