Historic demand trend imply continued nickel deficits
The rapid evolution in commodity consumption habits is fuelling a demand-supply disconnect in a number of commodities, underpinning a shift into deficit for nickel resulting in inventories already been drawn down.
Auroch believes continued inventory drawdowns will have significantly positive impact on the long-term nickel price as incentive pricing will be required to attract additional supply.
Invest in Base Metals
Base metals are one of the most fundamental minerals produced for the modern economy, and metals such as copper, zinc, nickel, lead, and aluminium are key components that support sustained economic growth.
Metal prices have risen in five out of the past six quarters due to strong demand—particularly in China’s property, infrastructure, and manufacturing sectors.
Invest in a Renewable Future
There are two key trends that will continue to drive base metal demand, clean energy and the electrification of everything.
There is a rush to replace current power generation sources on the grid with cleaner alternatives. Solar and wind are expected to see the largest growth by 2014 – both require considerable input from base metals.
China EV Consumption Drives Demand
Latest forecasts show sales of electric vehicles (EVs) increasing from a record 1.1 million worldwide in 2017, to 11 million in 2025 and then surging to 30 million in 2030. China will lead this transition, with sales accounting for almost 50% of the global EV market in 2025.