Mining and Trading House from Düsseldorf
Mining and Trading House from Düsseldorf.
COPPER PEAKED AS US RATE CUT HOPES GAIN RISK APPETITE
Copper prices gain to 1 week peak s weaker than expected USD retail sales data revived hopes for interest rate cut from Federal Reserve and lifted risk sentiment among investors. US retail sales dropped more than expected, caused by declines in receipts at auto dealerships and gasoline service stations. Copper dropped more than 3 pct this month on worries about demand from China.
COPPER GAINS ON WEAKER USD, SOILD FUNDAMENTALS
Copper prices gained as USD weakened and on the back of stable manufacturing demand from China. Investors expect US interest rate to keep at high level after US inflation figures released, indicating delay in Federal Reserve rate cut. Manufacturing cycle reached lower point, bearish sentiments normalise. China’s manufacturing data is holding up well, its resilience is still under-appreciated.
BHP CONSIDERS CLOSING WESTERN AUSTRALIA NICKEL OPERATIONS AMID PRICE DROP
BHP considering shutting its Western Australia nickel operations amid significant price drop. Nickel price dropped 40 pct as Indonesia supply surged resulting in restructures and writedowns at nickel mines across Australia. This is an uncertain time for Western Australia nickel industry.
LITHIUM PRICES MUST GAIN IN ORDER TO MEET SURGING DEMAND
Lithium prices must gain to ensure global supplies of key battery metal meet an expected tripling in demand by 2030. Lithium prices have fell more than 80 pct in past year. Lithium prices currently are unsustainable, adding that lithium projects in West are especially imperilled at current prices. Incentivizing producers to meet this demand requires long-term pricing at or above investment economics .
GOLD PRICES BRACED FOR 2ND WEEKLY DROP AS INVESTORS RETHINK RATE CUT BETS
Gold braced for 2nd consecutive weekly drop after unexpected rise in US consumer prices caused investors to rethink rate cut expectations, though gold recouped some losses following drop in consumer spending. The Fed will update forecasts at its policy meeting, where it is expected to hold interest rates steady. Traders expect first cut in June.
MEXICAN MINING SECTOR BALKS AT PLAN TO BAN OPEN PIT MINES
Mexico proposal to ban open – pit mining will generate uncertainty and curtail investment for key sector. Such a move would be disastrous for the sector, which fuels 2.5 pct of gross domestic product. Mexico is the world’s top silver producer and a major gold and copper producer. Prohibiting open-pit mining would imply the destruction of a strategic sector.
CANADA TO SPEED UP CRITICAL MINERAL MINING
Canada to boost its energy security by reducing time to develop new critical mineral mines with improved permitting processes. Ottawa focused on 6 critical minerals key to making EV and wind turbines: lithium, graphite, nickel, cobalt, copper and REE. Canada to reduce time to approve mining permits by better funding the regulatory agency to get rid of paperwork backlogs and running permitting and environmental assessment processes at the same time.
ARGENTINA, US STRENGTHEN TIES REGARDING CRITICAL MINERALS
Argentina and US discuss possible cooperation avenues regarding critical minerals. Points of discussion are current events related to the mining industry and develop mutual collaboration for the growth and expansion of the mining sector, placing Argentina as a strategic partner. Argentina, together with Chile and Bolivia, part of Lithium Triangle, hosts more than half of the earth’s identified lithium resources.