October 31, 2021 – Due to the Chinese intervention in coal prices in the country, the markets have had a short up and down ride. And have since consolidated at a high level. This consolidation was also necessary.
The coming week will be very interesting with the G20 meeting and the UN COP26 climate summit. The International Energy Agency has already forecast that the demand for critical minerals will increase sixfold by 2050. However, the IEA has left open where this amount of raw materials will come from.
Magnesium is extremely scarce in the EU. According to associations, the community of states will run out of the raw material at the end of November. Calls for government measures are being heard – the EU is reacting with a demand to increase production vis-à-vis China. But it will not be as easy as the Europeans hope.
Magnesium – EU industry concerned about shortage
October 25, 2021 – The EU industry is deeply concerned about an emerging shortage of magnesium. Magnesium prices have skyrocketed since September 2021. According to industry associations, Europe will run out of magnesium by the end of November – if nothing happens. A home-grown crisis, as the EU relies 95% on cheap imports from China. Metal values on the LME, such as nickel, aluminium, zinc and lead, rose again on Monday morning. And stainless steel in Europe more expensive due to shortages.
China – weather phenomenon La Nina comes at an ungood time
October 26, 2021 – The La Nina weather phenomenon has formed in the Pacific Ocean. According to weather experts, this is leading to colder and longer winters and will put additional pressure on the cost of energy in countries such as China, India, South Korea and Japan in the coming winter months. China produced nearly 600,000 fewer metric tons of stainless steel in September. And ferronickel prices are shooting up to a record high.
Magnesium shortage without simple solutions
October 27, 2021 – The EC has tried to find a simple solution to the magnesium crisis and, as expected, has failed to do so on a complex issue. China’s response to the demand to simply increase production was accordingly clear. Commodity markets are consolidating. And the Europeans are planning a ban on metal scrap exports through the back door.
Nickel and aluminium still at a high level
October 28, 2021 – Nickel and aluminium remain at high levels despite price consolidations on the commodity exchanges despite all the excitement it is always worth looking at the facts. Delivery times for semi-conductor chips are rising much more slowly. And India is looking for its own ways in the climate crisis and does not want to get involved in a net-zero target.
Demand for critical minerals will increase more than sixfold
October 29, 2021 – The demand for critical minerals per year for the energy transformation towards the net zero goal is expected to increase more than sixfold by 2050, according to a report by the International Energy Agency. This begs the question, where will these minerals come from if there are not enough now? Steel prices are rising again in Asia and Europe. And aluminium remains scarce despite Chinese coal subsidies.
US-EU reach agreement in steel and aluminium dispute
October 31, 2021 – The United States and the European Union have reached an agreement in the steel and aluminium dispute. According to media reports the European steel industry has received a tariff rate quota of 3.3 million tonnes of steel for exports to the United States.
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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.
