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The Decrease In The Price Of Metals Such As Iron And Steel By More Than 50% Is Causing The Loss Of Value Of The Shares Of Companies Focused On Mining Such As Vale (VALE3), CSN Mineração (CMIN3), Gerdau (GGBR4).
The shares on the stock exchange of companies such as Vale (VALE3), CSN Mineração (CMIN3), Gerdau (GGBR4), and other mining brands experienced significant declines, reaching over 50% in some cases in just one year after the stagnation of the sector, which resulted in iron and steel having accumulated declines of more than half of their value in the last year.
See How The Main Shares Of Mining Companies Such As Vale (VALE3), CSN Mineração (CMIN3), And Gerdau (GGBR4) Ended The Last Session On The Stock Exchange
On last Friday, July 22, Vale (VALE3) ended its day with an increase of 0.9%. However, this variation was not enough to recover the losses accumulated in July, which exceeded 10%. The variation over the last 52 weeks has a negative accumulation of 30%, while only in 2022, the company fell about 7.8%, showing that it has been suffering impacts from the pressure exerted on minerals after the war that broke out between Ukraine and Russia.
| Min — Max (Day) | 68.97 – 70.75 |
| Variation (Day) | +0.93% |
| Variation (Month) | -9.6% |
| Variation (2022) | -7.8% |
| Variation (52 Weeks) | -30.82% |
The decline of CSN Mineração (CMIN3) is even more pronounced. The company not only ended in the red in the last trading session but is also expected to finish July with a decline of over 11%. On Friday, July 22, the institution was pulled down in the stock market by the sector’s instability, falling at least 2.5%.
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Meanwhile, the accumulated devaluation of the shares is even more significant, losing more than half of its value in just one year. Now, the minimum price at which the shares are being traded is R$ 3.37. The biggest drop of CSN Mineração (CMIN3) occurred in 2022, in which they gained more than 44% of the 55% negative variation.
| Min — Max (Day) | 3.37 – 3.68 |
| Variation (Day) | -2.57% |
| Variation (Month) | -11.91% |
| Variation (2022) | -44.65% |
| Variation (52 Weeks) | -55.14% |
Gerdau (GGBR4) is one of the few companies focused on the commodities sector that is likely to finish July in the green, with an increase of 6%. The crisis, however, has already begun to be felt by the institution in 2022: The company has been experiencing a 10% decline in the value of its shares.
| Min — Max (Day) | 23.76 – 24.96 |
| Variation (Day) | -0.12% |
| Variation (Month) | +6.53% |
| Variation (2022) | -10.23% |
| Variation (52 Weeks) | -11.5% |
Why Are The Prices Of The Shares Of Mining Companies, Iron, And Steel Falling?
The prices of shares tend to follow the market and commodity variables, and this time will be no different, as both iron and steel are already showing negative variations, despite the peak prices, of at least 50% in the last 52 weeks.
With the crisis left by the global inflation surge and energy sector, it is not only the brands operating in the mining sector that may be affected: According to the newspaper Seu Dinheiro, brent oil has experienced a decline five times in the last six economic stagnations, and this year in 2022, the same will happen. Thus, it can drag along powers such as Petrobras, causing new market losses. The barrel, so far, shows a positive variation of 55%.
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