Nickel and copper, where there will be pent-up demand

Nickel is used in the production of stainless steel and for exhaust gas catalysts. Nickel stocks have fallen by around 50 percent since the beginning of the year and are now at their lowest level since 2012, indicating strong demand. The world’s largest nickel reserves are in Indonesia. And Indonesian President Joko Widodo wants to attract electric car producers, including German ones, to his country. According to Widodo, Indonesia is the ideal location for car producers. Emerging markets in particular could benefit from the e-car trend. Incidentally, Tesla is said to have already signed contracts worth billions of dollars to obtain material for its batteries from Indonesia. Nickel and also the battery material cobalt are owned, for example, by the Canada Nickel Company – https://www.youtube.com/watch?v=2i-e-fH8jZM – in its flagship Crawford project in Ontario.

For copper, the longer-term outlook should be very good. And in copper, inventories also remained at multi-year lows in the second quarter. In the third quarter, inventories declined further. Copper demand, experts say, should be mixed in China and slowing in the U.S. and Europe. But the long-term picture looks different, better, because of the energy transition. In the copper market, demand was greater than supply in the first seven months of 2022. 175,000 more tons of copper were consumed than offered. Population growth and product innovation will continue to increase the demand for copper, according to the International Copper Study Group. Some can be met from recycled material; otherwise, mining companies are in demand. This includes Copper Mountain Mining – https://www.youtube.com/watch?v=PFbOw_s00ao – with its stake (75 percent) in the producing Copper Mountain Mine in British Columbia.

Current corporate information and press releases from Copper Mountain Mining (- https://www.resource-capital.ch/en/companies/copper-mountain-mining-corp/ -) and Canada Nickel Company (- https://www.resource-capital.ch/en/companies/canada-nickel-company-inc/ -).

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