Metals & Mining Monitor | Gold and Silver Prices Exhibit Resilience; Vale to Invest $3.3B to Expand Copper, Nickel Production

Moomoo News Canada wrote a column · Jun 26 21:57

Metals & Mining Monitor | Gold and Silver Prices Exhibit Resilience; Vale to Invest $3.3B to Expand Copper, Nickel Production

Hello mooers! Check out the latest market dynamics of the metals and mining industry over the past week.
•Base metals: Copper and aluminum prices edge lower
•Energy metals: Lithium carbonate prices dip by 3.8%
•Precious metals: Gold prices experience slight increase
•Bulk commodity: Iron ore prices linger near April lows

Spot Price Snapshot

Key Price Moves

During the week ending last Friday, $Gold Futures(FEB5) (GCmain.US)$ experienced a modest 0.2% increase. However, on Friday, prices fell following their highest weekly level on Thursday. This decline coincided with the release of US Purchasing Managers’ Index (PMI) data, which indicated an increase. The Federal Reserve's future interest rate decisions remain uncertain due to mixed statements from officials. While some suggest a potential rate cut by year-end, others emphasize the need for further measures.

Despite these fluctuations, recent geopolitical and economic volatility, as well as increased interest in gold purchasing by central banks, have provided some resilience for future gold prices.

The price of lithium carbonate has further declined after falling below the critical price threshold of 100,000 Chinese Yuan (CNY) per ton, experiencing a 3.8% drop within a week to settle at 94,760 Yuan per ton ($13,310 per ton). Lithium mining companies and producers are actively increasing their capacities and searching for new deposits, intensifying concerns over potential oversupply. This is partly due to the proliferation of battery surpluses, which are linked to government subsidies extended to various segments of the supply chain.

Adding to the downward pressure on prices, the European Union has unveiled plans to impose tariffs as high as 38% on Chinese electric vehicle (EV) manufacturers, citing the adverse effects of subsisdy-induced price dumping. These proposed EU tariffs complement the aggressive stance taken by the United States, which has increased duties on Chinese EV imports fourfold to reach 100%.

Iron ore priced at $105 per tonne, marking a 2.4% decline over the past week. These prices are hovering near the lowest point since April, reflecting growing concerns about the demand for ferrous metals in China. Fresh economic indicators have intensified this bearish sentiment. Notably, housing prices in China experienced their steepest annual drop since 2015, falling by 3.9% in May, as reported by a survey from 70 cities. Furthermore, the country's fixed-asset investment figures have fallen short of expectations, highlighting a severe downturn in the property sector and a detectable hesitation among consumers to engage in real estate transactions.

Top Company News

Vale SA to Amplify Copper and Nickel Output with $3.3 Billion Investment

$Vale SA (VALE.US)$ has unveiled a strategic investment of $3.3 billion to significantly expand its copper production capacity to 500,000 tons by the year 2028, marking a substantial increase from the 326,600 tons produced in 2023. The investment will be primarily directed towards the enhancement of the Salobo and Sossego mines located in Brazil. Additionally, Vale is set to bolster its copper and nickel production infrastructure in Canada, reinforcing the company's commitment to meeting the surging demand for copper and supporting the global transition towards green energy solutions.

Mineral Resources Announces Closure of Yilgarn Iron Ore Operation in Western Australia by End of 2024

$Mineral Resources Ltd (MIN.AU)$ has announced the planned closure of its Yilgarn iron ore operation in Western Australia by the conclusion of 2024, a decision that is expected to result in approximately 1,000 job cuts. The company cited several reasons for the shutdown, including the diminishing ore reserves, the considerable capital expenditure required, and the extensive lead time needed for developing new deposits. A methodical wind-down process is set to begin over the following six months, aiming to ship as much as 4 million wet metric tonnes by the year's close.

Pilbara Minerals Deems Pilgangoora Lithium Project Expansion Highly Beneficial

$Pilbara Minerals Ltd (PLS.AU)$ said a prefeasibility study determined a roughly 1.2 billion Australian dollar (US$799 million) expansion of its flagship lithium operation in Western Australia would be highly accretive, and that the project could enter production later this decade. The miner's P2000 Project proposes an expansion of its current Pilgangoora operations to an average 1.9 million metric tons of annual production for the first 10 years. The mine is on track to run at an annualized production rate of 1 million tons following the ramp up of its P1000 Project in the quarter through September 2025, the company said.

SaskPower, Westinghouse, and Cameco Collaborate to Assess Nuclear Reactor and Fuel Supply Opportunities
Saskatchewan Power Corporation (SaskPower), Westinghouse Electric Company (Westinghouse), and $Cameco (CCJ.US)$ announced a strategic partnership through the signing of a memorandum of understanding (MOU). This collaboration aims to thoroughly assess the viability of Westinghouse's advanced nuclear reactor technology, along with the necessary nuclear fuel supply chain, to meet the anticipated demand for sustainable energy in Saskatchewan.