The time could be ripe for a commodity super cycle.
The improving global economic outlook is crucial for a commodity super cycle. Many prices are still rather low, so that surpluses are being eliminated or reduced. The metals in the platinum group, which include platinum and palladium, are experiencing low supply growth. This means that low platinum prices are putting pressure on supply. As a result, the World Platinum Investment Council expects a market deficit by 2028. This is not least because mine closures are imminent in Zimbabwe and the country is responsible for around nine percent of the global platinum supply. There are production cuts for nickel. There are supply disruptions for copper. In January, the copper market recorded a supply deficit of 7,000 tons. The Copper Smelters Purchasing Teams have also proposed a production cut. The production of Chinese copper smelters could be curtailed due to a shortage of ore. The demand for copper will also increase if the economic outlook improves. Copper should therefore be one of the raw materials with good prospects for the future.
The longer-term development of raw materials will certainly follow different paths. One important point is the energy transition. This will increasingly require copper, lithium, cobalt, rare earths and silver, among others. Back to global economic growth. In the second half of 2023, it was 2.7 percent. Germany and the UK recorded declines. By contrast, the economy grew in the USA (around four percent) as well as in China and other emerging markets. Economic growth stagnated in Japan, France, Italy and Canada. Investors who also believe that economic growth will pick up again should keep an eye on companies such as U.S. Critical Metals and Sibanye-Stillwater.
U.S. Critical Metals - https://www.commodity-tv.com/ondemand/companies/profil/us-critical-metals-corp/ - owns lithium, as well as rare earths and cobalt in various projects. There is also a uranium project. The projects are located in Nevada, Montana and Idaho.
Sibanye-Stillwater - https://www.commodity-tv.com/ondemand/companies/profil/sibanye-stillwater-ltd/ - produces gold, platinum and palladium. Sibanye-Stillwater is also involved in green metals such as lithium and copper. Uranium is a by-product.
Current company information and press releases from U.S. Critical Metals (- https://www.resource-capital.ch/en/companies/us-critical-metals-corp/ -) and Sibanye-Stillwater (- https://www.resource-capital.ch/en/companies/sibanye-stillwater-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/
The improving global economic outlook is crucial for a commodity super cycle. Many prices are still rather low, so that surpluses are being eliminated or reduced. The metals in the platinum group, which include platinum and palladium, are experiencing low supply growth. This means that low platinum prices are putting pressure on supply. As a result, the World Platinum Investment Council expects a market deficit by 2028. This is not least because mine closures are imminent in Zimbabwe and the country is responsible for around nine percent of the global platinum supply. There are production cuts for nickel. There are supply disruptions for copper. In January, the copper market recorded a supply deficit of 7,000 tons. The Copper Smelters Purchasing Teams have also proposed a production cut. The production of Chinese copper smelters could be curtailed due to a shortage of ore. The demand for copper will also increase if the economic outlook improves. Copper should therefore be one of the raw materials with good prospects for the future.
The longer-term development of raw materials will certainly follow different paths. One important point is the energy transition. This will increasingly require copper, lithium, cobalt, rare earths and silver, among others. Back to global economic growth. In the second half of 2023, it was 2.7 percent. Germany and the UK recorded declines. By contrast, the economy grew in the USA (around four percent) as well as in China and other emerging markets. Economic growth stagnated in Japan, France, Italy and Canada. Investors who also believe that economic growth will pick up again should keep an eye on companies such as U.S. Critical Metals and Sibanye-Stillwater.
U.S. Critical Metals - https://www.commodity-tv.com/ondemand/companies/profil/us-critical-metals-corp/ - owns lithium, as well as rare earths and cobalt in various projects. There is also a uranium project. The projects are located in Nevada, Montana and Idaho.
Sibanye-Stillwater - https://www.commodity-tv.com/ondemand/companies/profil/sibanye-stillwater-ltd/ - produces gold, platinum and palladium. Sibanye-Stillwater is also involved in green metals such as lithium and copper. Uranium is a by-product.
Current company information and press releases from U.S. Critical Metals (- https://www.resource-capital.ch/en/companies/us-critical-metals-corp/ -) and Sibanye-Stillwater (- https://www.resource-capital.ch/en/companies/sibanye-stillwater-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/
