Bank of America: Norilsk Nickel Would Benefit Most From Russian Turnaround

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OAO GMK Norilsk Nickel could benefit most if the risks that drove its stock sell off ease this year, according to a report by Bank of America Corp.

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While metal and mining companies in general are helped by a weaker ruble, which plunged 46% in 2014, rising Nickel prices could further boost Norilsk, the world’s largest producer of the industrial metal, Bank of America analysts including Wesley Fogel wrote in a research report.

“Norilsk, Magnit and some other stocks are buys, but our conviction on the market overall is extremely low as political risks remain high,” Fogel, a London-based strategist, told Bloomberg News Monday. “The cost of the Ukraine conflict is rising. And the longer it takes to solve the crisis, the harder it gets.”

Dropping 2.2%, the Indian nickel cash price was the biggest mover on Monday, January 5, closing at INR 954.10 ($15.08) per kilogram. On the LME, the nickel spot price fell 0.4% to $14,875 per metric ton. On the LME, the nickel 3-month price declined 0.3% to $14,970 per metric ton.

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Chinese stainless steel closed mixed on Monday. The price of Chinese ferro-chrome saw essentially no change for the fifth day in a row, remaining around CNY 10,950 ($1,765) per metric ton. The price of Chinese ferro-moly held steady at CNY 90,000 ($14,506) per metric ton.

After a 0.3% increase, the price of Chinese primary nickel finished the day at CNY 108,200 ($17,439) per metric ton. The Allegheny Ludlum 316 stainless surcharge saw little movement on Monday, closing out around $1.01 per pound. The price of Chinese 316 stainless coil saw little movement at CNY 23,700 ($3,820) per metric ton. The price of Chinese 304 stainless coil continues hovering around CNY 17,500 ($2,821) per metric ton for the fifth day in a row. The price of Chinese 316 stainless steel scrap remained essentially flat at CNY 13,350 ($2,152) per metric ton.

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