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The Brazilian mining giant, Vale, said that global demand for nickle should increase by 44% by 2030, compared to 2022 demand. The sharp increase will be fueled primarily by the high demand for nickel for use in batteries for electric vehicles. The company went further and said that the “energy transition” will be a key driver in the increases in demand for the metal as demand tops 6.2 MM tons/year. |
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The company expects its own nickel production to increase during that period, from 190k tons/year in 2022 to between 230k to 245k by 2030, and points out that supply will likely have to come from Indonesia and Canada. In addition, Copper demand is expected to be affected by the shift to EVs as the red metal is an essential component in the motors, batteries, inverters, and wiring (yahoo), and demand is expected to rise by about 20% by 2030 to 37 million tons/year. Vale forecasts a structural deficit in copper during the “medium and long-term” as the demand increases outpace supply. (Reuters, 9/8/2022) |
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Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. |
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AEGIS Insights |
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8/31/2022: Will Chilean Production Issues Drive Copper Prices Higher? 8/31/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 8/24/2022: Chinese Aluminum Supply Issues Could Rally Prices 8/16/2022: Zinc Prices Are On The Rebound Due To Supply Issues 8/9/2022: Aluminum prices are finding support: Consumers can lock in lower costs in 2023 and beyond |
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| Important Headlines | ||
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9/1/2022: Column: European smelter closures fracture aluminium pricing 8/31/2022: Copper output from Chile's Codelco to fall further in 2023, newspaper says 8/30/2022: Lista Smelter in Norway to Partially Curtail to Offset Energy Costs 8/30/2022: China's Sichuan, Chongqing resume power supply to industry 8/29/2022: Copper price back below $8,000 as hawkish Fed outweighs supply risk 8/26/2022: China's aluminum prices seen volatile as power crunch disrupts production: sources 8/26/2022: Codelco lowers 2022 copper production outlook 8/26/2022: Steel prices near bottom: Stelco CEO |
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Important Disclosure: Indicative prices are provided for information purposes only, and do not represent a commitment from AEGIS Hedging Solutions LLC ("Aegis") to assist any client to transact at those prices, or at any price, in the future. Aegis makes no guarantee to the accuracy or completeness of such information. Aegis and/or its trading principals do not offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program. Certain information in this presentation may constitute forward-looking statements, which can be identified by the use of forward-looking terminology such as “edge,” “advantage,” “opportunity,” “believe” or other variations thereon or comparable terminology. Such statements are not guarantees of future performance or activities.
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