Ni, Cu, Co

Nickel has outstanding physical and chemical properties, which make it essential in hundreds of thousands of products. Its biggest use is in alloying – particularly with chromium and other metals to produce stainless and heat-resisting steels.

Nickel is one of the base metals associated with the transition to green energy in all developed countries. In the report of the World Bank Minerals for Climate Action, this metal is assigned to the “Cross-Cutting Minerals” group. This group is used in a variety of green energy technologies and does not depend on its demand and does not depend on one particular technology. Consequently, the demand for these minerals will exist regardless of which technologies are more advanced.

METAL VALUE

Nickel is an element with such attributes as corrosion resistance, high-temperature stability, strength, ductility, toughness, recyclability, as well as catalytic and electromagnetic
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properties help achieve sustainability.

MINING AND PRODUCTION

Today’s nickel supply comes from two different types of deposits: Nickel Sulphides: higher grade, but rarer deposits that make up 37.5% of production nickel laterites:
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Low grade, bulk-tonnage deposits that make up 62.4% of production. Over two million tons of new or primary nickel are produced and used annually in the world.

MARKET TRENDS

The growth of metal consumption associated with the transition to green energy is estimated at 90 to 150% of today’s level. With the consumption growth in the
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production of batteries and other green energy technologies, high rates of nickel consumption in the production of stainless steel are predicted.

PRICE

Nickel prices have shown steady growth rates over the past years. Indicators were volatile during the first six months of this year and reached almost USD 20,000 per ton.

Copper is a metal that has a unique combination of various properties: excellent corrosion resistance, high ductility, attractive color and texture, high thermal conductivity and good electrical conductivity.

Today, copper and copper alloys metal is used in the following main areas: construction – 43%; electrical and electronic industry – 20%; transport equipment – 20%; consumer and general products – 10%; and industrial machinery and equipment – 7%.

METAL VALUE

Copper, along with nickel, is one of the base metals associated with the transition to green energy in all developed countries. In the report of the World Bank Minerals for Climate
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Action, this metal is assigned to the “Cross-Cutting Minerals” group. Copper is required in all major energy technologies – wind, solar photovoltaic, concentrated solar power, hydro, geothermal, energy storage, nuclear, coal, gas, carbon capture and storage. The demand for metal in traditional industries will grow regardless of green energy and is according to the USGS forecast.

MINING AND PRODUCTION

An assessment of copper deposits by the USGS has shown that the identified resources contain approximately 2.1 billion tons of copper. The main industrial types of
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deposits are porphyry copper and layered, which together contain 80% of the known resources. The main issues of resource availability are associated with the depletion of the highest quality and most easily accessible deposits. World copper production is in the range of 20-25 million tons per year and may vary due to fluctuations in ore grades, strikes and disruptions related to weather conditions and the pandemic. The increase in production in China was mainly offset by the shutdown of smelters for maintenance and modernization in other countries. The volumes of mined and refined copper are strongly affected by trade duties on copper concentrates, as well as restrictions on the supply of sulfuric acid required for the production of electrolytic copper.

MARKET TRENDS

The outlook for copper production in 2021 is driven by increased demand. Demand in China is expected to grow at a faster rate than in recent years. It is predicted that China will increase
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its consumption of refined copper by about 5-7%. Copper supply is expected to grow strongly in 2021 in Congo, Indonesia and Panama. Now, high copper prices make new projects more attractive, but traditionally the problem is finding good quality projects in countries with stable governments and mining legislation. Additional requirements from companies are now also related to high ESG standards (environmental, social and governance risks), as investors and directors are reluctant to participate in projects that could harm the environment, especially with regard to greenhouse gas emissions and waste disposal.

PRICE

Throughout the current year, copper prices remain high and unstable with a high probability of surges above $ 8-9 thousand per ton. There will likely be a downward trend towards the end of the
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year as production begins to adjust to higher demand. Prolonged market shortages, low inventory levels, strong trading interest from investors, and an increase in the use of copper in green energy have driven the current price increases. Analysts expect all of these factors to drive prices up in 2021. In the second quarter of this year, copper prices reached an all-time high, exceeding USD 10,700 per ton for the first time.
Cobalt is one of the minor metals which widely used in a number of industrial sectors, first of all cobalt steels and alloys as a magnetic material and cobalt compounds for the manufacture of paints, as well as in the ceramic industry.  Its excellent magnetic characteristics gave rise to a wide demand for cobalt in automation, electrical engineering, radio engineering, rocket and space technology. Cobalt alloys are widely used in the manufacture of metalworking tools. This contributes to the demand for cobalt in aircraft and space engines. In the chemical industry metal is used as a catalyst for some processes and as a component for the production of acid-resistant alloys.
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The key area of cobalt consumption – electronics and batteries production. These actively growing segments have given rise to the recent surge in prices for this metal. For example, making one smartphone will require about 5-10 grams of cobalt, for a laptop – about 30 grams, the electric car battery – up to 20 kilograms of cobalt.

METAL VALUE

Cobalt is one of the minor metals associated with the transition to green energy. In the report of the World Bank Minerals for Climate Action, this metal is assigned to the
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group of «High-Impact Minerals» for which level of future demand is much greater than today production levels. They are predominantly (but not exclusively) minerals used in energy storage technologies. Projected annual demand from energy technologies in 2050 is 460 % of the current rate.

MINING AND PRODUCTION

According to USGS data Congo continued to be the world’s leading source of mined cobalt, supplying approximately 70% of world cobalt mine production. With the exception
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of production in Morocco and artisanally mined cobalt in Congo, most cobalt is mined as a byproduct of copper or nickel. Diversification of metal supplies is an important strategic task for the majority of metal consumers. China was the world’s leading producer of refined cobalt, most of which it produced from partially refined cobalt imported from Congo . China was the world’s leading consumer of cobalt, with more than 80% of its consumption being used by the rechargeable battery industry.

MARKET TRENDS

Cobalt market trends are determined by the main producers: Glencore, Fleurette Group, China Molybdenum, Vale. Over the period from 2016 to 2018, contracts have more than
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quadrupled, from $ 22,000 to $ 95,000 / tonne of metal. In the short term, other producers may be interested in increasing production due to improved prices. These events are affecting short-term trends and the long-term outlook for the cobalt market is very positive.

PRICE

The nearest prospect may be the price recovery to $ 50– $ 60 thousand. The stimulus for growth should be an objective increase in demand for cobalt from the world
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economy, which includes the automotive industry (the world’s largest manufacturers besides Tesla). In 2021, analysts expect the segment to fully recover, and, accordingly, consumption will grow by 11%.

LLC NONFERROUS METALS OF UKRAINE
The project with high-liquid commodity products: nickel-cobalt and copper concentrates, which is confirmed by previous dynamics of prices and production.
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