This week was a mixed bag for base metals, with some making leaps and bounds while others took a nosedive.
Nickel’s price increased significantly this week, following the news of Indonesia’s nickel export ban taking full effect. On October 31, the metal closed the market at US$16,830 per tonne, a significant jump from its October 28 price of US$16,675.
Copper, meanwhile, saw a downturn with the price dropping from its October 28 price of US$5,888 per tonne to US$5,823. Although the price struggled this week, this week had good news for the copper industry — the government of Peru finally gave Southern Copper (NYSE:SCCO) the go-ahead to develop its Tia Maria project.
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Zinc also fell this week, with the price dropping from its October 28 price of US$2,575 per tonne to US$2542.50 on October 31.
Iron, like the other base metals, also struggled this week, hitting its peak early and falling to a low by Thursday (October 31). Iron’s price fell from US$90.23 per tonne on Monday (October 28) to US$89.55 on Thursday (October 31).
Lead rose quickly only to fall this week, with the price hitting its peak on Tuesday (October 29) at US$2,265 per tonne only to drop to US$2,209 on Thursday.
Top Stories
1. Indonesia’s Nickel Export Ban Takes Effect Immediately
On October 28, the Indonesian government announced that it would roll out its nickel ore export ban immediately. Wood Mackenzie analysts expect this move will remove 190,000 tonnes of nickel ore from circulation by 2021.
2. Government of Peru Greenlights Southern Copper’s Tia Maria Project
Following years of back and forth, the government of Peru has finally given Southern Copper the approval it requires to continue development at the Peruvian Tia Maria project.
The mine struggled to move forward due to push back from local communities who were concerned about the environmental impact such a mine would have on its locality.
3. Rio Tinto Announced Expectations for Its Iron Ore Project in 2020
On October 31, Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) announced that its shipment guidance will increase by five percent between 2019 and 2020, subject to market conditions; the company will announce official numbers in January 2020.
Rio Tinto’s main iron ore project, Pilbara, struggled to produce iron ore in 2019 due to poor weather conditions.
Also in the news
After a collapse in Brazil killed hundreds, the Church of England led a study about the safety of dams at mines, and recently put out a report which found 10 percent of dam structures have stability issues.
Meanwhile in Chile, BHP (ASX:BHP,LSE:BHP,NYSE:BHP) announced that its Escondida copper mine is operating at a reduced rate following union workers walking off the job in solidarity with protestors in the city.
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Securities Disclosure: I, Sasha Dhesi, hold no direct investment interest in any company mentioned in this article.
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