Hot Topics in Global Metals & Mining Each Week, BMO Equity Research Metal Matters

BMO Equity Research Metal Matters

Hot Topics in Global Metals & Mining Each Week

Featuring Colin Hamilton, Commodities analyst at BMO Capital Markets, Metal Matters discusses the hot topics in Global Metals & Mining each week.

Thematic (Sector/Industry)

<ul><li>Copper smelters are struggling for profitability but output is still rising, creating a relative concentrate imbalance in copper and zinc.</li><li>Zinc mine output has declined year on year, leading to a tightness in concentrate supply and challenges for smelters.</li><li>The electric vehicle market is facing challenges due to high costs and lack of policy support, especially in OECD markets, while China has a significant lead in the industry with lower costs and established supply chains.</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Copper smelters are struggling for profitability but output is still rising, creating a relative concentrate imbalance in copper and zinc.Zinc mine output has declined year on year, leading to a tightness in concentrate supply and challenges for smelters.The electric vehicle market is facing challenges due to high costs and lack of policy support, especially in OECD markets, while China has a significant lead in the industry with lower costs and established supply chains.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Commodities

Gold is a chemical element with the symbol Au (from Latin: aurum) and the atomic number 79. In its purest form, it is a bright, slightly reddish yellow, dense, soft, malleable and ductile metal. Chemically, gold is a transition metal and a group 11 element. It is one of the least reactive chemical elements, and is solid under standard conditions. The metal therefore occurs often in free elemental (native) form, as nuggets or grains, in rocks, in veins and in alluvial deposits. It occurs in a solid solution series with the native element silver (as electrum) and also naturally alloyed with copper and palladium. Less commonly, it occurs in minerals as gold compounds, often with tellurium (gold tellurides).

<ul><li>Talk of a 5-10% output cut in Tangshan to be maintained through year end causing steel prices in China to stabilize</li><li>Accumulated losses in China's steel industry at $400 million over the first seven months of the year, leading to concerns about forced consolidation</li><li>Improvement in sentiment due to positive demand side news in the metals industry, including local governments using special purpose bonds to buy properties and a rare target set for housing completions in the second half of the year</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Talk of a 5-10% output cut in Tangshan to be maintained through year end causing steel prices in China to stabilizeAccumulated losses in China's steel industry at $400 million over the first seven months of the year, leading to concerns about forced consolidationImprovement in sentiment due to positive demand side news in the metals industry, including local governments using special purpose bonds to buy properties and a rare target set for housing completions in the second half of the yearThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Steel is an alloy of iron and other elements, primarily carbon, that is widely used in construction and other applications because of its high tensile strength and low cost. Steel's base metal is iron, which is able to take on two crystalline forms (allotropic forms), body centered cubic (BCC) and face centered cubic (FCC), depending on its temperature. It is the interaction of those allotropes with the alloying elements, primarily carbon, that gives steel and cast iron their range of unique properties. In the body-centred cubic arrangement, there is an iron atom in the centre of each cube, and in the face-centred cubic, there is one at the center of each of the six faces of the cube. Carbon, other elements, and inclusions within iron act as hardening agents that prevent the movement of dislocations that otherwise occur in the crystal lattices of iron atoms.

<ul><li>China's steel industry is facing significant challenges, including price drops, overcapacity, and government intervention</li><li>Steel producers are preparing for potential consolidation and supply side reforms to address the industry crisis</li><li>Iron ore prices have also been impacted by the challenges in the steel market, with expectations for lower Chinese imports and domestic output</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

China's steel industry is facing significant challenges, including price drops, overcapacity, and government interventionSteel producers are preparing for potential consolidation and supply side reforms to address the industry crisisIron ore prices have also been impacted by the challenges in the steel market, with expectations for lower Chinese imports and domestic outputThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Copper is a chemical element with symbol Cu (from Latin: cuprum) and atomic number 29. It is a soft, malleable and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a reddish-orange color. It is used as a conductor of heat and electricity, as a building material and as a constituent of various metal alloys, such as Sterling silver used in jewelry, cupronickel used to make marine hardware and coins and constantan used in strain gauges and thermocouples for temperature measurement.

<ul><li>China's state grid is increasing spending by 13% this year, which could boost sentiment in the copper sector</li><li>Chinese steel rebar standards are changing, leading to concerns about obsolete inventories and potential pressure on steel prices</li><li>India's rising demand for metals, particularly in steel production, could have a significant impact on the global market by 2030</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

China's state grid is increasing spending by 13% this year, which could boost sentiment in the copper sectorChinese steel rebar standards are changing, leading to concerns about obsolete inventories and potential pressure on steel pricesIndia's rising demand for metals, particularly in steel production, could have a significant impact on the global market by 2030This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Platinum is a chemical element with symbol Pt and atomic number 78. It is a dense, malleable, ductile, highly unreactive, precious, gray-white transition metal. Its name is derived from the Spanish term platina, which is literally translated into "little silver". Platinum is a member of the platinum group of elements and group 10 of the periodic table of elements. It has six naturally occurring isotopes. It is one of the rarer elements in Earth's crust with an average abundance of approximately 5 μg/kg. It occurs in some nickel and copper ores along with some native deposits, mostly in South Africa, which accounts for 80% of the world production. Because of its scarcity in Earth's crust, only a few hundred tonnes are produced annually, and given its important uses, it is highly valuable and is a major precious metal commodity.

<ul><li>Manganese ore, alumina, molybdenum, and chrome ore prices are up, while cobalt prices are down due to market surplus</li><li>Precious metals like gold are well placed and resilient, with potential for record industry profitability</li><li>Copper is still the best way to play the acceleration in global electrification, with potential opportunities in zinc and bulk commodities as well</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Manganese ore, alumina, molybdenum, and chrome ore prices are up, while cobalt prices are down due to market surplusPrecious metals like gold are well placed and resilient, with potential for record industry profitabilityCopper is still the best way to play the acceleration in global electrification, with potential opportunities in zinc and bulk commodities as wellThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

BMO Equity Research Metal Matters
Hot Topics in Global Metals & Mining Each Week
• BMO Equity Research Metal Matters

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Getting U Ready, as Gold Gleams

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Making a Drama Out of a Steel Crisis

The steel industry in China is facing a crisis due to low prices, negative margins, overcapacity, and government restrictions, but there are signs...

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Getting the Grid Connection Back

China's state grid is set to increase spending by 13% this year, potentially boosting sentiment in the copper sector, while new standards for...

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Concentrating on Concentrates

Manganese ore, alumina, molybdenum, and chrome ore prices are up, while cobalt prices are down due to market surplus Precious metals like gold are...

BMO Equity Research Metal Matters