27 June 2022 – The first analysts are speaking out and see a recapitulation phase for nickel, copper and gold in particular and are cited as the best investments.. Rising nickel demand expected in the coming months. Positive signals also in iron ores, coke and HRC. And Indian steelmakers and other non-energy companies are getting only 50% of the coal they need in some cases.
Nickel, Copper, Gold: Demand is way going to exceed supply
As we move towards a recapitulation phase in commodities, copper, nickel and gold will be the best assets, says Brent Cook, founder of Exploration Insights.
“I am very confident that the copper price will do well,” he said. “Demand will far outstrip supply. Nickel is the same way. Gold looks good.”
Cook was speaking to David Lin, Anchor and Producer at Kitco News, at the PDAC 2022 convention in Toronto.
SHFE: Nickel futures up as much as 4 per cent
Nickel futures in Asia started the week with some decent gains. In particular, traders expect demand to increase significantly in the coming months. This has caused prices to jump up by up to 4% in some cases.
LME nickel gains more than 3% at the start of trading
Nickel on the LME has made a decent leap upwards at the start of trading today, gaining more than 3%. An exciting start to the week.
Iron ore, coke, hot-rolled coil rise
Positive expectations today also for iron ores (approx. +4%), coke (approx. +2.3%) and hot-rolled coil (approx. +1.25%).
Coal: Indian non-energy companies still undersupplied for years?
There still seems to be no solution to India’s energy crisis. Recently, several industry associations had called on the Indian government not to focus only on power generation, but to treat industrial companies equally. For many companies, the cost of coal has more than doubled.
Indian steel producers get only 50% of the coal they need
India’s coal crisis has been getting worse since 2021. Most recently, non-energy companies received just 50% of the coal they needed. Indian steel producers are likely to be particularly affected by this. According to media reports, steel producers have already had to reduce or even completely stop their production. A short-term solution does not seem to be in sight and could be years away.
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