Copper
Commented by Stefan Feulner on August 13th, 2021 | 11:39 CEST
Steinhoff, Kodiak Copper, NIO - At the beginning of the trend
Rising inflation is making living more expensive. The culprit for the increase - in Germany, consumer prices rose by 3.8% in July compared to the same month last year - is increasingly expensive raw materials. In addition to agricultural commodities such as corn and wheat, metals in particular, which are urgently needed for the energy transition, are going through the roof. There is no end in sight to the price increase here; economists are already talking about a supercycle lasting years.
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Commented by Armin Schulz on August 9th, 2021 | 12:14 CEST
BYD, GSP Resource, Standard Lithium - Lithium hype, but do not forget copper
In recent weeks, real hype has broken out around lithium. It is said that lithium producers cannot adapt to demand so quickly. Due to the radical change of course in the automotive industry away from the combustion engine to the e-car, the demand for lithium will increase considerably. The price of lithium has already doubled from USD 5,000 to USD 10,000. It is expected that demand will increase by 300%. It should not be forgotten that copper is also essential for the switch to e-mobility. But it is not just in that sector that the demand for copper is increasing; worldwide, more and more people are gaining access to electricity. Today, we look at BYD, a manufacturer of e-vehicles, and two potential suppliers of copper and lithium.
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Commented by André Will-Laudien on August 5th, 2021 | 12:45 CEST
TUI, GSP Resource, NEL - The volcano starts to smoke!
Chart analysis is a popular tool among traders and investors to optimize trading in securities or derivatives. The goal is to forecast future price developments based on charting techniques. However, there is a need to remember that under the assumption of efficient market theory, a chart already contains all the available information. Unfortunately, there are as big misunderstandings in chart interpretation as in fundamental analysis. In charts, formations may or may not indicate a breakout, whereas fundamental information has historical and future significance. In all assumptions, we naturally assume that the stock market is always right, meaning that the current price reflects the Company's value at any point in time. But that does not make the decision any easier!
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Commented by Carsten Mainitz on July 30th, 2021 | 11:21 CEST
First Majestic Silver, Kodiak Copper, Orocobre - Metals for e-mobility offer great growth potential
Tesla, NIO and Polestar, the pioneers of e-mobility. But the global climate crisis and the realization that it can only be combated with the help of a consistent reduction in greenhouse gases has also led traditional car manufacturers to realize that alternative drive concepts are necessary, not least as a result of legal requirements. Electromobility has currently established itself as the most promising option. Manufacturers are now hastily trying to steer their product development in this direction and are making announcements about the end of the internal combustion engine: Jaguar wants to phase out the engine by 2025. Fiat, Volvo and Ford have announced the end of the engine by 2030. VW has set the period between 2033 and 2035 as its target, at least for Europe, and Audi wants to phase out entirely by then. Mercedes also has a similar date in mind. However, all e-cars have one thing in common: they are very hungry for raw materials. An e-car requires about four times as much copper as a combustion engine. Consumption of gold and silver (onboard electronics) and lithium (batteries) will also increase significantly.
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Commented by Armin Schulz on July 21st, 2021 | 12:49 CEST
QMines, Varta, Siemens Energy - Who benefits from the copper shortage?
The copper price has moved significantly upwards over the past year. On the one hand, this is due to the increasing demand caused by sustainability topics such as renewable energies, e-mobility and global electrification. On the other hand, the metal has become scarce. Whereas 60 profitable copper projects were launched in 2008, only 36 were established in 2020, and this with declining mining values. In 2015 0.65% copper per ton was still being mined; this value will fall to 0.55% by 2025. Existing large copper mines will also need billions in the coming years to maintain their production levels. These additional costs will be passed on to consumers. Today we highlight three companies that either produce or need copper.
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Commented by André Will-Laudien on July 20th, 2021 | 12:38 CEST
BYD, Volkswagen, Kodiak Copper: The 1000 Dollar Correction!
The copper price had reached its interim high in May 2021 at around USD 10,500. Since then, we have seen a standard consolidation of 10-15%, which is not an unusual occurrence in an uptrend. The increase since the beginning of 2020 is over 100%. Copper mines have been able to post multiple performances in the same period, and the recent correction was accordingly somewhat higher. For many market participants, however, the medium-term scenario for the industrial metal is set. Since the political closing of ranks on e-mobility, demand for copper and battery metals has shot through the roof. Mine operators worldwide are alarmed; the currently recoverable capacities cover just 85% of the demand from 2022. Who can close the gap?
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Commented by Carsten Mainitz on July 19th, 2021 | 11:05 CEST
Barrick Gold, GSP Resource, SMA Solar - Buy Prices?
Raw materials and energy are central prerequisites for our life as we know it not to stand still. Often it is only when there are supply bottlenecks and significant price jumps that we become aware of the importance of what is suddenly no longer readily available. Due to their fundamental importance, commodities and energy are therefore forward-looking investment themes. We present three exciting companies. Who will win the race?
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Commented by Stefan Feulner on July 16th, 2021 | 14:45 CEST
Plug Power, Kodiak Copper, NIO - The shortage as an opportunity
Commodity markets are always subject to the forces of supply and demand. The energy transition and the achievement of climate targets pose new challenges for society. With the expansion of electromobility and renewable energies such as wind and hydropower, demand for some mineral raw materials will increase sharply. This is offset by an extremely tight supply and trade conflict with the leading producer China. There is a threat of further rising prices and, to be seen with the current chip shortage, even production losses.
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Commented by Stefan Feulner on July 14th, 2021 | 12:32 CEST
BYD, GSP Resource, Volkswagen - Follow the trend
The future is to become climate-neutral and low-carbon. With the energy concept and the energy turnaround, Germany is phasing out nuclear energy and switching from oil to renewable energies. Today, the entire mobility sector is still highly dependent on oil, but this is now to change as quickly as possible. The car industry has already sung the farewell song of the combustion engine in favor of battery-powered vehicles. But we are only at the beginning of long-term development.
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Commented by Stefan Feulner on July 7th, 2021 | 11:49 CEST
BYD, QMines, Xpeng - Play the Trend
In recent weeks, there have been shortages of many commodities and intermediate goods. The shutdown of production during the Corona pandemic led to supply shortages of lumber, semiconductors and chemicals. In contrast, demand for consumer goods rose sharply after the economy eased. The result was significantly increasing prices due to the shortage. In the long term, this phenomenon will also occur for metals needed for the energy transition. The first tendencies are already becoming apparent. Take advantage of the cycle!
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