China drives prices of industrial metals
In the third quarter, China's economy grew by 4.9 percent compared to the previous year. If China's new five-year plan continues to rely on measures to support the economy, for example in the infrastructure sector, then the industrial metals should benefit from this. China is the country that dominates the market in this sector. This is how the experts at Commerzbank see it.
It is good that there are companies with large zinc and also lead reserves in the ground, such as Osisko Metals. The company owns large zinc mining camps in Canada. Among them is the ninth largest property on earth with zinc and lead.
Just now there is also the threat of miners' strikes in South America, which could reduce the supply. The base metals of the London Metal Exchange Index, copper, lead, nickel, tin, zinc, are at high price levels. The index itself is already significantly higher than before the Corona crisis. The JP Morgan Industrial Metals Index is also around 30 percent higher than in March (the low point).
Copper, the economic metal par excellence, is also at a high price level and profits from the strong demand from China. Copper is mainly used in the electronics industry, in mechanical engineering and in the construction industry.
Copper and also silver resources are located at the San Martin Project of Hannan Metals in Peru, a good country for metal companies. Hannan Metals' project consists of nearly 90 mining concessions.
Recent company information and press releases from Osisko Metals ( https://www.resource-capital.ch/en/companies/osisko-metals-inc/) and Hannan Metals ( https://www.resource-capital.ch/en/companies/hannan-metals-ltd/).
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