A Glimpse At Top Primary Metals In 2019 - Nickel, Palladium, Zinc, Tin And Copper

Metal prices has surged amid an increase in demand and over the building optimism among market participants, due to the ongoing US-China trade talks. Previously, the global metal market fell on account of harm caused by the higher tariff war among the major economies and consumers of the base metals.

The metal market started showing signs of respite from the starting of 2019 amid the betterment in the global economic outlook, over the improving relationship between the U.S. and China and the fundamentals of supply and demand.

Copper prices started an up-rally, with benchmark COMEX Copper Futures surging from the level of $2.543 (which marked the day’s low on 3rd January 2019) till $2.978 (which marked the day’s high on 1st March 2019) amid higher demand from the Automotive Industry, the rapid transformation in the automotive industry towards the electric vehicle supporting the copper prices along with the respite sign in U.S-China trade war. The expansion activities over the manufacturing sectors in China and the U.S. also supported the copper prices.

Nickel prices also marked an up-rally, with Nickel Futures surging from the level of $10532.50 (which marked the day’s low on 2nd January 2019) till the level of $13722.50 (day’s high on 5 March 2019). The primary factor which supported the nickel prices is the ongoing rapid electrification and demand of nickel for the energy storage battery construction. As nickel is an essential raw material required to produce electricity storage battery and has no close substitute, the demand surged for the base metal.

Nickel is also required in higher proportion as compared to the other base metals, for anode construction of electricity storage batteries. The increased stance by different countries to curb the emission and shift towards the Zero-emission economies also supported the electrification process in the automotive industry, and thus, in turn, provided the support to the nickel prices.

Palladium prices rose from the level of $815.20 (which marked a day’s low on 16th August 2018) to the level of $1525.80 (which marked a day’s high on 26th February 2019) amid higher demand from Japan and China. The demand for palladium surged its prices, as China and Japan started to tap into the hydrogen cells market, to overcome the problem associated with electric vehicles. The electric engine in the heavy transportation vehicles could cover a much higher distance, so Japan and China have shifted their focus towards the hybrid cells, that requires palladium for the catalysis of the harmful emission and is much powerful as compared to the electric powered engines.

Zinc prices surged over the Chinese smelter showdown to curb the harmful emission associated with the process, and thus, in turn, created a deficit concern in the global market and supported the Zinc prices.

Zinc prices surged from the level of $2412.00 (which marked a day’s low on 3rd January 2019) to the level of S2809.50 (which marked a day’s high on 5th February 2019), However, the prices soon took a correction till $2576 (Day’s low on 14th February 2019) in the absence of high demand for the metal. The prices again picked up and are currently hovering around $2768, as falling inventory on LME, supported the prices.

Tin prices also surged amid supply concerns in the global metal market. The Benchmark Tin futures surged from the level of $18175.00 (which marked the day’s low on 27th November 2019) to the level of $21782.50 (which marked a day’s high on 25th February 2019). The Tin prices posted a highest three month gain in March. The higher demand for the metal emerged from the electric vehicle segment, as tin is used along with nickel to create an electricity storage battery.

In a nutshell, metal prices surged over high demand and falling supply along with building optimism among the investors.

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