Weekly Mining Commentary

Author: Sid Rajeev, Head Of Research

Six of the seven global equity indices we track were up WoW.

Zinc prices were down 2.2% WoW despite inventory declines on the LME and the SHFE (Shanghai). China’s manufacturing activities in May were up both MoM and YoY.

Source: MarketWatch

Valuations of gold producers were down 3% WoW; base metal producers stayed flat.

All of the top 15 hardest hit nations (except Argentina and Colombia) reported flat or WoW declines in new COVID-19 cases four weeks in a row.61.6% of Canada’s population has received at lease one dose vs 56.9% at the same time last week. Canada overtook the U.K. last week, and is now only behind Israel, in terms of percentage of population with at least one dose. 7.5% of Canada’s population are fully vaccinated (previously 5.3%) vs 41.0% in the U.K. (37.3%), and 42.0% in the U.S. (40.4%). We are now expecting 75% of Canada’s population to have at least one dose, and 20% to be fully vaccinated, by next month (previous estimate was August).

We are maintaining our price forecasts. We are expecting stronger demand for base metals in H2-2021, amid an economic recovery post-pandemic. That said, as prices are still well above historic levels, we are expecting price corrections for base metals. We are not expecting a supply deficit for any of the mainstream base metals this year.

FRC Forecasts

Source: FRC

Weekly Mining Commentary

Author: Sid Rajeev, Head Of Research

Source: https://www.researchfrc.com/weekly-mining-commentary-70