Fallout of Russia-Ukraine war: Metal users, producers feel price pinch

Price hikes in the offing, say metal producers; may have to pass on costs, say user industries

Widespread apprehension that the world may fall short of ferrous and non-ferrous metals on account of the Russia-Ukraine war has led to a surge in the prices of these items over the past two weeks.

Between February 23 and March 8, three-month nickel futures on the London Metal Exchange (LME) increased 97 per cent, zinc 16 per cent, aluminium 6.2 per cent, and copper 3.5 per cent. According to CRISIL Research, prices of steel — FOB China have increased 4 per cent in the last two weeks.

Russia is a major producer of metals — it accounts for 6-8 per cent of