On the one hand, short-term downward pressure is expected, and on the other, supply bottlenecks could arise.
Commodities started 2023 very well, driven by optimism. The reason was the opening of China. The giant China, according to the predictions, should fuel the global demand for industrial products, thus also for industrial raw materials. The world is increasingly based on high technologies and therefore gobbles up large quantities of copper and other industrial metals. Added to this is the growing demand for battery metals and rare earths. But the most accessible and cost-effective deposits have been exploited. Mining sites with higher production costs are now in demand for the supply of raw materials. Governments want larger shares of value creation, economic development, and resource protectionism is on the rise. Protectionism is a trade policy in which the government intervenes to disadvantage foreign suppliers in the domestic market. Possible measures include import quotas, tariffs, longer periods for approving projects, or reforms of mining laws. Tendencies to protect one's own market are increasingly evident.
In addition, environmental, social and governance standards are rising. Decarbonization ideas are also gaining weight in new projects. In view of the associated constraints, the current underinvestment in the metals sector could persist. This should increase upward pressure on prices in the second half of 2023. One metal driven by global demand growth is copper. This is supported by reopening, investments in electrification and in the transition to clean energy production.
For example, Torq Resources - https://www.commodity-tv.com/play/torq-resources-plans-to-drill-at-santa-cecilia-and-margarita-in-2023/ - owns copper and gold in its excellent projects (Santa Cecilia, Margarita, Andrea) in Chile.
The San Martin copper-silver project of Hannan Metals - https://www.commodity-tv.com/play/mining-newsflash-with-karora-resources-hannan-metals-oceanagold-and-victoria-gold/ - is located in Peru. Other projects belong to the company, they contain gold, silver, copper and zinc.
Current corporate information and press releases from Torq Resources (- https://www.resource-capital.ch/en/companies/torq-resources-inc/ -) and Hannan Metals (- https://www.resource-capital.ch/en/companies/hannan-metals-ltd/ -).
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/
Commodities started 2023 very well, driven by optimism. The reason was the opening of China. The giant China, according to the predictions, should fuel the global demand for industrial products, thus also for industrial raw materials. The world is increasingly based on high technologies and therefore gobbles up large quantities of copper and other industrial metals. Added to this is the growing demand for battery metals and rare earths. But the most accessible and cost-effective deposits have been exploited. Mining sites with higher production costs are now in demand for the supply of raw materials. Governments want larger shares of value creation, economic development, and resource protectionism is on the rise. Protectionism is a trade policy in which the government intervenes to disadvantage foreign suppliers in the domestic market. Possible measures include import quotas, tariffs, longer periods for approving projects, or reforms of mining laws. Tendencies to protect one's own market are increasingly evident.
In addition, environmental, social and governance standards are rising. Decarbonization ideas are also gaining weight in new projects. In view of the associated constraints, the current underinvestment in the metals sector could persist. This should increase upward pressure on prices in the second half of 2023. One metal driven by global demand growth is copper. This is supported by reopening, investments in electrification and in the transition to clean energy production.
For example, Torq Resources - https://www.commodity-tv.com/play/torq-resources-plans-to-drill-at-santa-cecilia-and-margarita-in-2023/ - owns copper and gold in its excellent projects (Santa Cecilia, Margarita, Andrea) in Chile.
The San Martin copper-silver project of Hannan Metals - https://www.commodity-tv.com/play/mining-newsflash-with-karora-resources-hannan-metals-oceanagold-and-victoria-gold/ - is located in Peru. Other projects belong to the company, they contain gold, silver, copper and zinc.
Current corporate information and press releases from Torq Resources (- https://www.resource-capital.ch/en/companies/torq-resources-inc/ -) and Hannan Metals (- https://www.resource-capital.ch/en/companies/hannan-metals-ltd/ -).
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/
