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Base metal related
TwoSides2aCoin
Posts: 45,245 ✭✭✭✭✭
A few years ago, I noticed nickel jumped to $21 per pound. Then dropped like an anchor. Today, I see copper is almost as much. Will copper surpass nickel in value ? Any insight ?
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Nickel is irreplacable in the production of stainless steel and many defense goods. During the 2000's, there were two major spikes in nickel price. First around 2006 due to high stainless steel demand in China during the industrialization of the country and then again in 2022 due to the outbreak of the war between Russia and Ukraine. For a long time, most of the world's nickel supply was mined in just a hand full of countries (Russia, Canada, China and France), but since the 2020's Indonesia and the Philippines have established themselves as the top producers, ensuring a broader availibility.
Copper on the other hand has always been in demand for a large number of applications. Especially the electrification in transport and mobility, the rise of decentralized renewable energy production and the AI-boom have fuled the demand in recent years. A lot of easily accessable copper ore deposits are nearly depleted and developing new deposits is both complex and expensive. Also it's very time consuming, so increasing the production does not only require a lot of money, but it will also take years in prospecting and preparation efforts.