In the 1960s, revolutionary and often left-wing populists took control of foreign mining company assets “for the people” through “resource nationalism.” They proceeded to destroy inherent values and even plundered coffers to use for corrupt ends. Some nationalization efforts, like Chile’s, ended in the formation of Codelco, a world-class mining entity. However, far too many others did […]
Category: Commodities
China’s Yunnan Province Cuts Aluminum Production
A new question mark hangs over the fate of Chinese aluminum production for the rest of 2023. In March, China’s primary aluminum output increased by 3% compared to the same period in the previous year. However, the increase occurred at a slower pace than in previous months. While this did bring some cheer, the future […]
Glencore Pressures Teck Resources to Accept Merger Offer
On April 19, Glencore released an open letter to Teck Resources’ Class B shareholders. In the document, the company asked investors to accept the commodity trading and mining multinational’s merger offer. Meanwhile, Glencore stock remains up from mid-March, though still below the highs seen in January. The open letter also noted that Glencore would approach shareholders […]
Renewed Steel Demand in China Causing Iron Ore Production to Rise
For the 1st quarter of this year, China’s iron ore imports hit a Q1 record. Altogether, prices climbed nearly 10% from January to March, reaching 29.3 million tons (MT). Indeed, March alone saw imports grow 1.8% to 100.23 MT. Helping these numbers were expectations of stronger steel demand as the Chinese economy continues to emerge […]
Teck Resources Rejects Glencore’s Merger Proposal
Canadian company Teck Resources has rejected a revised offer from commodity trading and mining multinational Glencore. This follows a similar rejection of the initial offer posed earlier in April. The Vancouver-headquartered company also added that “the Teck board and management team remain fully confident that Teck’s planned separation creates a greater spectrum of value-enhancing opportunities […]
Global Precious Metals MMI: Investors Trade Cash for Cold, Hard Gold
The Global Precious Metals MMI (Monthly Metals Index) enjoyed its largest month-over-month increase in a year. Between March and April, the index broke out of its tight sideways range and rose by 6.93%. The current talk of the town for precious metal prices today centers around recessionary fears. Indeed, investors are increasingly turning to precious […]
Stainless MMI: Index Falls as Stainless Steel Price Appears Bearish
The Stainless Monthly Metals Index (MMI) fell 7.53% from March to April. Downside momentum continued to pressure the nickel market, sending prices down into support zones. Meanwhile, no bullish reversal patterns have formed, leaving the global stainless steel price at high risk of further decline. Get weekly updates on nickel and stainless steel price trends […]
Australia on Track to Earn as Much for Lithium as Thermal Coal
Australia is on the brink of a significant accomplishment in the worldwide transition from fossil fuels to renewable energy sources. Within the next five years, the country projects it will generate as much revenue from exporting lithium, a crucial mineral in battery technology, as it presently does from thermal coal. This news is even more […]
Construction MMI: Infrastructure Construction Remains Robust, Private Projects Feeling Recession Pains
The Construction MMI (Monthly Metals Index) narrowly missed trading flat. Overall, the index remained sideways, with just a minuscule drop of 0.13%. In the face of recent construction news, the index proved much less volatile than in the past three months. All three bar fuel surcharges within the index (Weekly Gulf Coast, Weekly Rocky Mountain, […]
Metal Manufacturing News: Glencore Proposes Merger with Canada’s Teck Resources
On April 3, multinational commodity trader and mining group Glencore announced its proposal for a merger with Canada’s Teck Resources. Estimates say the metal manufacturing merger could potentially create $4.25-5.25 billion of post-tax synergy value. However, Vancouver-headquartered Teck announced its rejection of the offer on the same day. “The board of directors of Teck has […]