Inventories of both metals are low.
Demand from China is important for the industrial metals markets. China's announcements of aid measures regarding the real estate sector, which is in crisis, are currently having a positive effect. The LMEX index (London Metal Exchange Index), which represents the price development of the largest metal exchange in the world, the LME (aluminum, copper, lead, tin, zinc, nickel) was therefore able to further extend its gains. Not so positive were the activity data from China for October. Retail sales and also industrial production were lower than expected. The weakening real estate sector probably had a causal effect. Should the Middle Kingdom relax its zero-covid policy, this should give a boost to the metals, thus also copper and nickel.
Even though copper has come back somewhat in terms of price, the price for a ton of copper is still well above the recent average of US$7,600 per ton. A ton of nickel currently costs just under US$25,000. Nickel is needed in stainless steel products, so it should be used in the construction of many homes in China. Another important use of nickel is in exhaust catalysts. The sharp rise in e-mobility could even make nickel a scarce raw material in the coming years. Energy storage systems in electric drives need nickel. Copper is also used in electric cars, and much more so than in conventional vehicles, so the future looks bright for these two metals.
The same applies to companies that own these raw materials, such as Canada Nickel Company - https://www.youtube.com/watch?v=-RZ8N_WNFxo - with its flagship Crawford project in Ontario. A feasibility study should be completed soon.
Among the copper companies, Copper Mountain Mining is pleasing. The company owns 75 percent of 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/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
Demand from China is important for the industrial metals markets. China's announcements of aid measures regarding the real estate sector, which is in crisis, are currently having a positive effect. The LMEX index (London Metal Exchange Index), which represents the price development of the largest metal exchange in the world, the LME (aluminum, copper, lead, tin, zinc, nickel) was therefore able to further extend its gains. Not so positive were the activity data from China for October. Retail sales and also industrial production were lower than expected. The weakening real estate sector probably had a causal effect. Should the Middle Kingdom relax its zero-covid policy, this should give a boost to the metals, thus also copper and nickel.
Even though copper has come back somewhat in terms of price, the price for a ton of copper is still well above the recent average of US$7,600 per ton. A ton of nickel currently costs just under US$25,000. Nickel is needed in stainless steel products, so it should be used in the construction of many homes in China. Another important use of nickel is in exhaust catalysts. The sharp rise in e-mobility could even make nickel a scarce raw material in the coming years. Energy storage systems in electric drives need nickel. Copper is also used in electric cars, and much more so than in conventional vehicles, so the future looks bright for these two metals.
The same applies to companies that own these raw materials, such as Canada Nickel Company - https://www.youtube.com/watch?v=-RZ8N_WNFxo - with its flagship Crawford project in Ontario. A feasibility study should be completed soon.
Among the copper companies, Copper Mountain Mining is pleasing. The company owns 75 percent of 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/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
