Industrial metals on the verge of recovery
The recent escalation in the trade dispute no longer had a negative impact on metal prices. The USA has also reached agreements in disputes with other countries. This has been done, for example, through negotiations with the EU (no further reciprocal tariffs) or through negotiations with Mexico, where a bilateral trade agreement was reached.
The USA also reached an agreement with Canada on the continuation of the NAFTA agreement in a modified form. The new US-Mexico-Canada Agreement (USMCA) will replace the old free trade rules and should lead to more economic growth and fairness in trade.
One commodity with which prices could rise in this environment is zinc. After the price had fallen sharply, supply is now being scarce, especially from Chinese smelters. Shanghai zinc inventories have fallen to an eleven-year low. Therefore, the zinc price should go up again.
Zinc companies such as Zinc One rely on the commodity. The Company's zinc projects, Bongará and Charlotte-Bongará in Peru, both have high grade zinc mineralization at or near surface. Zinc One aims to start production of its projects as soon as possible.
Not only zinc, but also or above all copper, is a raw material that is heavily dependent on the global economy. The forecasts of the International Copper Study Group now assume a supply deficit in 2018. And in 2019 demand for copper is expected to pick up significantly (+2.6 percent after +2.1 percent in 2018). This pleases companies with copper projects such as Aurania Resources.
Aurania Resources' - https://www.commodity-tv.net/c/search_adv/?v=298509 - Lost Cities project in Ecuador is designed to deliver copper and gold once. The Jurassic Metallogenic Belt in the Andes in southeastern Ecuador is an excellent country for the search for raw materials.
Current company information and press releases from Aurania Resources (https://www.resource-capital.ch/en/companies/aurania-resources-ltd.html).
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