Monday, June 5, 2023
  • Login
Upgrade
The Southern African Times
  • Home
  • Southern Africa
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
    • Lifestyle
      • Health
      • Culture
      • Food and Drink
      • Entertainment
  • Opinion
  • Sports
  • Events
  • SAT Jobs
  • About Us
    • Advertise with Us
    • Contact Us
No Result
View All Result
  • Home
  • Southern Africa
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
    • Lifestyle
      • Health
      • Culture
      • Food and Drink
      • Entertainment
  • Opinion
  • Sports
  • Events
  • SAT Jobs
  • About Us
    • Advertise with Us
    • Contact Us
No Result
View All Result
The Southern African Times
No Result
View All Result
Home

Key to Unlocking Major Investment in Africa – Better Data

by SAT Reporter
July 2, 2022
in Analysis, Markets
0
Key to Unlocking Major Investment in Africa – Better Data
0
VIEWS

Industrial metal prices have just seen their biggest quarter of falls in many years, with the market reflecting exposure to China’s COVID lockdowns, inflation, rising interest rates and stalled growth.

The speed and magnitude of the fall was unexpected and partly reflects the sale of metal such as aluminium and nickel bought in anticipation of supply disruptions to material from Russia, which did not materialise, after it invaded Ukraine.

“Metal supply is rising because it has been incentivised. Demand is slowing and the trend is for surpluses,” said Julian Kettle, Vice Chair of Metals and Mining at consultants Wood Mackenzie.

 

HOW FAR HAVE METALS PRICES FALLEN?

Aluminium CMAL3 prices on the London Metal Exchange (LME) plunged 30% in the second quarter, the largest quarterly loss since the financial crisis in 2008.

Copper CMCU3 dropped 20% in the second quarter, the largest quarterly loss since 2011, when the bubble created by massive Chinese stimulus burst.

Zinc CMZN3 tumbled 24% and lead dropped 21% in the second quarter, the largest quarterly losses since 2010 and 2011 respectively.

Tin CMSN3 and nickel CMNI3 crashed 38% and 29% respectively in the second quarter, the most on record.

With the exception of lead, all the other five metals hit record highs in March as markets priced in expectations of deficits due to robust demand and transport bottlenecks in producing regions.

WHAT ARE INDUSTRIAL METALS USED FOR?

Copper is vital for conducting electricity and is used in electronics, white goods, autos and buildings, zinc is used to galvanise steel and lead is a component of batteries used in internal combustion engine cars.

Aluminium is crucial for transport, packaging and construction, tin is used in electronics and semiconductors, while nickel is used to make stainless steel and electric vehicle batteries.

WHAT HAPPENED TO DEMAND?

COVID lockdowns in top consumer China have hit manufacturing and demand for metals, while soaring inflation, interest rate rises and the possibility of recession have undermined industrial activity around the world.

Global copper demand is estimated to grow around 2%-3% this year to around 26 million tonnes after 4%-5% growth in 2021 and aluminium demand is expected to grow little more than 2% to around 71 million from 8% growth last year.

Zinc consumption is forecast to rise at a sedate 1%-2% this year from 6%-7% in 2021 and nickel demand is seen expanding around 5% this year from around 15% last year.

Rising nickel output in major producer Indonesia is likely to boost global supplies by 14%-18% to more than 3.1 million tonnes this year.

Zinc supplies are expected to stagnate, partly because of production cuts in Europe due to record high power prices.

WHERE ARE SUPPLIES HEADING?

Copper supplies are seen climbing 3%-5% on production ramp ups at mines in Latin America, Africa and elsewhere, while aluminium supplies are forecast to rise 3.5% with much of that rise in China.

Macquarie analysts estimate restarts and new aluminium capacity in China in the first five months of the year at 2.4 million tonnes per annum and one million tonnes per annum respectively.

“We expect operational smelting capacity to reach 42.5-43.00 million tonnes per annum by the end of this year,” they said.

 

Tags: ChinaCommodityMarketsMetalsSteel
Previous Post

Key to Unlocking Major Investment in Africa – Better Data

Next Post

11th World Urban Forum: amplifying the voices of African cities

SAT Reporter

Related Posts

South African business activity falls to almost two-year low – PMI
Markets

South African business activity falls to almost two-year low – PMI

by SAT Reporter
June 5, 2023
Zimbabwe Gains Access to Chinese Market as Citrus Exports Begin
Markets

Zimbabwe Gains Access to Chinese Market as Citrus Exports Begin

by SAT Reporter
June 4, 2023
Angola Gradually Removes Fuel Subsidies to Spur Economic Growth
Markets

Angola Gradually Removes Fuel Subsidies to Spur Economic Growth

by SAT Reporter
June 2, 2023
J.S. Held Expands Reach in Africa with Acquisition of Africa Matters Limited
Markets

J.S. Held Expands Reach in Africa with Acquisition of Africa Matters Limited

by SAT Reporter
June 1, 2023
Boosting Avocado Exports: Kenya Focuses on China at Africa Avocado Congress
Markets

Boosting Avocado Exports: Kenya Focuses on China at Africa Avocado Congress

by SAT Reporter
June 1, 2023
Next Post
11th World Urban Forum: amplifying the voices of African cities

11th World Urban Forum: amplifying the voices of African cities

Browse by Category

  • African Continental Free Trade Area
  • African Debt
  • African Start ups
  • Algeria
  • Analysis
  • Angola
  • Asia
  • Botswana
  • BOTSWANA
  • BRICS
  • Burkina Faso
  • Burundi
  • Business
  • Business
  • Cameroon
  • Central Africa
  • China
  • Climate Change
  • Climate Changev
  • Congo Republic
  • COVID 19
  • Culture
  • Democratic Republic of Congo
  • Eastern Africa
  • Education
  • Egypt
  • Energy
  • Entertainment
  • Environment
  • Ethiopia
  • Europe
  • Fashion
  • Feature
  • Finance
  • Food
  • Food and Drink
  • Foods
  • Ghana
  • Global
  • Guinea
  • Health
  • Immigration
  • in Southern Africa
  • International news
  • Just In
  • Kenya
  • Lesotho
  • Libya
  • Life Style
  • Lifestyle
  • Malawi
  • Malawi
  • Mali
  • Markets
  • Middle East
  • Mozambique
  • Namibia
  • Nigeria
  • North Africa
  • North-Eastern Africa
  • Opinion
  • Politics
  • Racism
  • Rwanda
  • SAT Jobs
  • Senegal
  • Seychelles
  • South Africa
  • South Sudan
  • Sports
  • Startup Africa
  • STOCK EXCHANGE
  • Sustainablity
  • Tanzania
  • Tech
  • Togo
  • Travel
  • Travel
  • Tunisia
  • Uganda
  • Uncategorized
  • West Africa
  • World
  • World
  • ZAMBIA
  • Zambia
  • ZIMBABWE
  • Zimbabwe

Browse by Tags

africa African business news Africa News african footballer African investments African news African start-up Agriculture banking Business China Classic Climate change Content currency economy Explore Bali Finance football Health Investment Kenya Life Style Markets Market Stories Nigeria oil and gas Opinion Pandemic Politics Premium Russia South Africa Southern African News sports Stay Home technology Travel United Kingdom United Stated Vaccine Work From Home Wuhan Zambia Zimbabwe

WHO WE ARE

The Southern African Times is a regional bloc digital newspaper that covers Southern African and the world news. The paper also gives a nuanced analysis on news and covers a wide range of reporting which include sports, entertainment, foreign affairs, arts and culture.

Facebook Twitter Youtube Instagram Rss

Copyright © 2022 The Southern African Times | Powered by The Southern African Times

Privacy Policy

Terms and Conditions

  • Home
  • Southern Africa
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
    • Lifestyle
      • Health
      • Culture
      • Food and Drink
      • Entertainment
  • Opinion
  • Sports
  • Events
  • SAT Jobs
  • About Us
    • Advertise with Us
    • Contact Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?