This morning in metals news, some think copper’s hot 2017 could run out of steam, copper stabilized after hitting a two-year peak recently and Asian battery makers are looking to use more nickel instead of cobalt.
Copper Outlook for Second Half of 2017
It’s not unreasonable to wonder whether or not copper can continue its robust run throughout the remainder of the calendar year.
The metal recently hit its two-year peak. Some, however, think the metal is due to fall off its current pace.
According to a report in Barron’s, there are numerous red flags indicating copper could reverse course — with a particular focus on China.
“Analysts believe regulatory tightening will soon weigh on growth, cooling demand for copper and other industrial metals in the months ahead,” writes Ira Iosebasvili.
If the Chinese economy hits a period of slower growth — as many in recent months have warned will happen — then the copper market will certainly be affected.
For Now, Copper Holds Steady
Although many analysts are predicting a course correction for the metal throughout the rest of the year, copper is holding steady.
A rally in Chinese steel and iron ore prices painted a positive positive in China, the world’s largest metals consumer, Reuters reported.
Trading in Cobalt for Nickel?
For makers of batteries in Asia, cobalt is getting a little pricey — so much so that some battery makers are turning to even more nickel.
A rise in cobalt prices has inspired battery makers in Asia to adjust their battery ingredient formula, according to a report from Reuters.
Cobalt prices have shot up over the last year on high demand and supply disruptions, Reuters reports. In fact, Reuters reports the price of cobalt rose to six times that of nickel in July.