The fall of the ruble helps Russian metallurgical plants

Russian metals and mining companies are avoiding a wide sell-off of their shares as a weaker ruble helps boost their export earnings.

"Metallurgical and mining companies almost doubled their revenues due to the weakening ruble," said Kirill Chuiko, head of the financial group for stock market analysis. “At the same time, commodity prices are not declining in the same way as oil,” he said.

RUSAL, the world's largest aluminum producer, which hit a record low in November 2013, has seen a significant rally in its shares. Aluminum prices are up about 10 percent this year, and European buyers are also paying nearly double the price of fast shipping as the market outside of China runs into a deficit for the first time since 2008. Nickel advanced more than 20 percent in 2014 after China cut production.

However, pipe makers such as TMK OJSC (TMKS), which fell 39 percent this year, are the only losers from the ruble's fall as ruble-denominated pipe prices lag behind steel and scrap costs.

The price of hot rolled steel exported from the former Soviet republics and Russia has fallen 12 percent this year to its lowest level since June 2009. However, the depreciation of the ruble continues to help PJSC Severstal and OJSC Novolipetsk Metallurgical Plant increase EBITDA to levels that have been unattainable for at least three years.