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Base metals do really well in a bustling economy.
Development outside of the Western world is pushing up prices.
Supply - Driver
Falling supply is also a driver.
Base metals are the most fundamental minerals produced for the modern economy, and metals such as copper, zinc, nickel, lead, and aluminum are the key components that support sustained economic growth.
Periods - Expansion - Materials - Economy - Inventory
During periods of economic expansion, these are the first materials to support a bustling economy, reducing inventory at metal warehouses and eventually their source, mines.
A BASE METAL BOOM?
Today - Tartisan - Nickel - Look - Demand
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.
Over the last three years, prices of base metals have risen on the back of a growing economy and the anticipation of usage in new technologies such as lithium-ion batteries, green energy, and electric vehicles:
Success - Development - Nations - Production - Consumption
As goes the success and development of nations, so goes the production and consumption of base metals.
WHY HIGHER PRICES?
Development - Outside - World - Driver - Base
Development outside of the Western world has been the main driver of the base metal boom, and it will likely continue to push prices higher in the future.
China has been the primary consumer of metals due to the country's rapid economic expansion - and with recent efforts to improve environmental standards, the country is simultaneously eliminating supplies of low quality and environmentally toxic metal production. India and Africa will also be emerging sources of base metal demand for the coming decades.
Story - Nations - Developments - World - Wave
But this is not solely a story of developing nations, as there are some key developments that will include the developed world in the next wave of demand for base metals.
Future demand for base metals will be driven by the onset of a more connected and sustainable world through the...
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