Base Metals & New electric vehicles

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Further production of Electric vehicles will rise demand for base metals

Electric vehicle market will to boost for 13.7% of global car sales in 2025. This means that copper, aluminium and nickel could highly benefit on these movements.

If we estimate a situation in which 100% of the world’s vehicles were electric, this would impact a copper demand growth of 21%. (Compared to a current growth). Later, the aluminium demand would rise by 13%. While Nickel would see incredible boost of demand for INCREDIBLE 118 % ! Rare metals, such as , lithium, cobalt and graphite would also face a rising demand.

”These figures were based on findings by analysts who physically took apart an entry-level Chevrolet Bolt to see what it contained. ” (Metal Bulletin)

There were comments on how aluminium demand would also rise.

Due to the electrical infrastructure required to fuel the vehicles. These facts were not explained to the fullest.
In 100% electric vehicles scenario, platinum group metals were forecast to see a 53% drop in demand. Steel would see a marginal decline in demand in the context of the global steel market.

“We are more convinced than ever that electric cars will reach the tipping point in the penetration curve in the next few years.”

“This new generation of electric cars has far-reaching implications. For not only the global auto industry but also for many other sectors, such as capital goods, chemicals, mining, technology and energy.” (UBS Research)

The new models of electric cars are going to enter the market soon. For example, the Tesla Model 3 is going to hit the market in upcoming years. UBS Research expects that 14.2 million electric vehicles will be sold in 2025.

 

 

Second successive month of strikes in Grasberg copper mine

Numbers of workers at Grasberg mine, from the workers union decided to go on a second-month strikes. It is the 2nd consecutive month. Because the strikes started in May, and it was expected that they would be one-month long.

“Yes, the strike will go on for a second month.” union representative Tri Pusputal said on Monday May 22.
Freeport is frequently operating under a temporary export permit. To ship copper concentrates out of Grasberg. It is in the Indonesian territory of West Papua, after the government lifted an export ban in April.

The Freeport has been able to ship material to key customers in Japan, South Korea, India and China. But despite that, production at the mine has been affected over the past month by the May strike.

There is another obstacle in Freeport’s production in Indonesia. The company delayed 86,000 tonnes of contained copper.

And also reported that red metal sales coming straight from the mine were down. In percentage, for almost 28% in the first quarter of 2017. Due to this ban.

Grasberg is the world’s second largest copper mine by production. Mining 680,000 tonnes of copper in concentrate during the course of 2016. It is also the second largest for gold – producing 42.3 tonnes in 2015.

The extension of Grasberg mine strike could affect further production and further gains in copper concentrate TC/RCs.

Which confirmed to a three-month high of $80.5 per tonne/8.05 cents per pound. (According to the Metal Bulletin reports)

When asked to comment, the Freeport was not available.

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