Deutsche Bank had recently reported more frequently on the soaring prices on the various commodity markets. In a recent newsletter article, the bank discusses the investment backlog in the mining sector.

Extreme investment backlog in the mining sector
After mine operators, whose share prices have already developed very well, manufacturers of mining equipment such as wheel loaders, bulldozers and excavators could be the next to benefit – because the mining sector has an extreme investment backlog.
Read also:
- Foreign demand expected to boost Philippine nickel industry
- Iron ore rises on easing liquidity concerns in China and positive demand outlook
- Chinese iron ore futures rise on optimistic demand after Lunar New Year festival
- Ore and alloy prices remain dynamic in Q1
Mining equipment significantly outdated
Not only has the average age of equipment risen to a new all-time high of eleven years, exceeding the normal service life in every category; ore quality is also steadily declining, meaning that more and more rock has to be processed.
Liquidity high for mine operators – capital expenditures could rise 20%
In addition, experts estimate that mine operators worldwide will have up to $150 billion in free cash on hand this year as a result of the sharp rise in commodity prices. As a result, investments in new equipment could rise by around 20 percent to almost 70 billion US dollars in 2021.
Ore quality declines continuously – what are the consequences?
The decline in ore quality is likely to lead to rising raw material costs for the foreseeable future. This is because significantly higher costs will have to be incurred in order to maintain the current ore quality. This in turn is likely to have an impact on the end products.
Source: deutsche-bank.de

Steelnews.biz constantly searches the Internet for important, interesting and informative news.
Are you missing an information, do you have a question or are you interested that we refer to a certain article or press release of Steelnews.biz? Then simply contact us now.
We always try to refer to the correct source of a news item.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.