The impact of russia-Ukraine conflict on the upstream of cable industry

The impact of the Russia-Ukraine conflict on the copper market mainly comes from two aspects. One is that rising energy costs discourage local copper enterprises in Europe to start work, and the other is that increased inflationary pressure boosts the demand for copper preservation. Given Russia's small copper consumption and long history of sanctions, market risk aversion will not continue to climb, copper prices will return to their fundamentals.

Russian zinc ingot production is small, the russia-Ukraine conflict on zinc prices mainly lies in the increase of energy costs in Europe. European refiners cut production in October as gas prices rose sharply. On October 13, 2021, Nyrstar announced that its three zinc smelters in Europe with a combined annual capacity of nearly 700,000 tons of zinc ingots would reduce production by 50%, which pushed Shanghai zinc up to 27,715 yuan/ton at one time. 

The conflict between Russia and Ukraine will also have a significant impact on nickel supply. The russia-Ukraine conflict and the European and American sanctions against Russia may make the Russian nickel export to Europe blocked, causing the rise of Lunni; But at the same time the Russian nickel imports to the domestic quantity may increase, resulting in a strong external weak internal situation.