Metals and Minerals

Industrial base metals and strategic minerals are important to the construction and manufacturing industries, but as most of you may have noticed, the strength of those industries depend on economic growth.

Some are more in demand than others. And some are in short supply. If you know which metals and minerals are suffering from a supply shortage — and invest in them early enough — you can make a profit before the rest of the investment crowd figures it out.

Demand in commodities is driven by emerging markets and activity within the housing, construction and infrastructure sectors. Depending on the demand from China and India for these metals in the future, many investors will be wondering where that leaves them in the economic cycle.

What is the metals and minerals industry?

Metals and minerals largely include materials used for construction and manufacturing, excluding those used for energy. Important metals include steel (alloys), aluminium, copper, zinc and lead; rare-earth metals are also a key component of the market. Minerals include diamond, marble, asphalt, and silica.

These minerals and metals have many applications for everyday life. Mineral ores produce a wide range of metal and mineral-based products. Metals are also used in high-technology applications like batteries and mobile phones.

What is driving the metals and minerals industry?

Despite the downturn coming from China and the recent decline of Australia’s expenditure into minerals exploration, there are other factors influencing the drive for investments. There has been a recovery in the amount of investment in the mining sector and a resurgence from foreign investors looking to capitalise on tech metals.

The rise of green energy technologies could signal a significant drive for these materials in resource-rich countries like Australia. New energy transformation (NET) technologies will also play an important role in the use of these materials. And in the wind, solar and other low-carbon technologies that will emerge in the commodity market. The Australian mining industry may be on the verge of the next tech metals boom.

Uranium Market Draws on new Strength

Output of the global uranium market has dropped off in 2018 against growing demand in Asia, which is driving prices higher. A low price environment has also caused major uranium producers to suspend production, which has helped lift prices to fix the supply and demand imbalance.

Demand for Cobalt in Batteries is Set to Continue

Demand for cobalt is increasing at a rapid rate, rising 13.5% each year from 2010–2017. And this number is only expected to keep growing. There’s been a lot of developments made on all fronts of the Cobalt sector this year and this could be very important for investors.
Money Morning Australia