Metal stocks show some shine

Metal stocks are in the limelight today morning. MMTC is the top gainer, up over 14.5% at Rs.52.75 and this is followed by Hindustan Copper, up over 8% at Rs.67.60 and NMDC is just a little into the green, up less than 0.5% at Rs.117.80.

Metals stock have surged following the Govt giving its approval to renew the agreement for supply of up to 16.5 million tonnes (MT) of high grade iron ore to steel plants in Japan and South Korea over three years, from April, 2015 to March, 2018.

The quantities covered under the agreement will be in the range of 3.8 MT to 5.5 MT per year and will be supplied primarily from the mines of the National Mineral Development Corporation (NMDC). The contract will be executed by the Metals and Minerals Trading Corporation of India Limited (MMTC).
India has been supplying high grade iron ore to Japan and South Korea under long term agreements for the last four to five decade.