During periods of economic expansion, base metals such as copper, zinc, nickel, lead, and aluminum are the first materials to support a bustling economy, reducing inventory at metal warehouses and eventually their source, mines. Today's infographic comes to us from Tartisan Nickel and it takes a look at the surging demand for base metals for use in renewable energy and EVs, and whether this could translate into a sustained bull market for base metals. The original article has been edited here by munKNEE.com for length (…) and clarity ([ ])According to the Commodity Markets Outlook (World Bank, April 2018), supply could be curtailed by slower ramp-up of new capacity, tighter environmental constraints, sanctions against commodity producers, and rising costs. If new supply does not come into the market, this could also drive prices for base metals higher. There is only one source to replenish supply and fulfill future demand, and that is with mining. New mines need to be discovered, developed and come online to meet demand. In the meantime, those that invest in the base metals could see scarcity drive prices up as the economy moves towards its electric future on a more populated planet. An extended base metal boom may very well be on the horizon. Scroll to very bottom of page & add your comments on this article. We want to share what you have to say! The post Extended Base Metal Boom On the Horizon - Here's Why appeared first on munKNEE.com. |
