Eramet Stock Plummets 11% in One Week, Approaching Critical Support Level
Eramet has experienced a significant decline this Friday, March 20, amid a widespread retreat in European stock markets. The mining and metallurgical group's stock fell by 3.66% to 47.42 euros, bringing its weekly loss to over 11%. The CAC 40 index is down by 1.40% at 7,698 points during the session.
Approaching Critical Support
Eramet's stock price is dangerously close to the support threshold at 46.10 euros, a technical level that, if breached downward, could amplify the downward momentum. With an RSI dropped to 29, the stock is now in an oversold zone, indicating particularly strong selling pressure in recent weeks. This RSI level, generally interpreted as a signal of extreme downward tension, reflects the magnitude of the downturn suffered by the stock, which is currently trading well below its 50-day (64.78 euros) and 200-day (55.75 euros) moving averages. Over the past year, the loss has reached 18.66%, while the quarterly performance is at -6.93%. The stock is thus in a prolonged downward trend, with no short-term catalyst identified that could reverse the trajectory. The publication of the first quarter 2026 revenue, expected on April 23, will be the next major milestone for market players.
High Tension in European Markets
This Friday's session takes place in a climate of high nervousness on European exchanges. The SBF 120, an index that includes Eramet, is down by 1.39% at 5,832 points during the session. The VIX, a measure of implied market volatility in the US, was at 25.09 in its last reading on March 18, up more than 12% from the previous day, signaling a high-tension environment. In the commodities and metallurgy sector, comparable companies listed in Paris are showing mixed performances: Aperam is down by 0.12% while Imerys remains stable. Eramet thus stands out for the intensity of its decline, which significantly exceeds the average drop of its reference index. The surge in Brent crude prices, which crossed $107 this Friday amid the conflict in the Middle East, further burdens the energy cost outlook for energy-intensive industrial groups like those in the mining and metallurgical sector. This sudden increase in energy prices, with oil prices up 50% since the end of February, adds additional pressure on the operational margins of the sector.
