Rusal: Global Aluminum Deficit to Widen in 2017
Global aluminum market deficit will expand to 1.1 million tonnes in 2017 from 0.7 million tonnes in 2016 since demand will grow faster than supply, Rusal said in its latest quarterly report. The aluminum giant expects global aluminum supply to increase 4.3% to 61.6 million tonnes this year and global aluminum demand to rise 5.0% to 62.7 million tonnes. Aluminum supply in China will grow 6% to 34.3 million tonnes in 2017, while demand in China will rise 6.7% to 33.5 million tonnes, according to the report.
Silver Selloff Irrational; Fundamentals Support Higher Prices – Randy SmallwoodWithin the past month, silver has gone from being one of the best-performing assets in financial markets to giving away almost all of its gains this year, but one mining executive remains optimistic on the precious metal during this volatile period.In an interview with Kitco News, Randy Smallwood, chief executive officer of Wheaton Precious Metals, said that despite the selling pressure, he sees potential in the long term. The streaming company formally known as Silver Wheaton officially changed its name Wednesday. The company is expected to trade under the ticker WPM on the New York Stock Exchange and the Toronto Stock Exchange by May 16.The lack of growth in silver mining is one of the main reasons why Smallwood said he is bullish on silver.
“Every year we are seeing less and less production and more and more demand. Because of the fundamentals in the marketplace, the silver price should be much stronger than it is,” he said. “We think it is only a matter of time before the market focuses its attention back on these fundamentals.”Smallwood’s comments come on the same day the Silver Institute published a report highlighting a drop in silver production in 2016, the first drop in 14 years. Smallwood said that this is only the start of what is going to be a growing trend.
“We think silver production is going to drop for the next four or five years at least,” he said. “There is just no investment going into developing new projects. There is not a lot of greenfield exploration happening and we don’t really see anything that will be the next major source for silver.” In the current environment, Smallwood said that he is expecting to see higher volatility in prices of precious metals, but markets will remain relatively range-bound until fundamentals come back into focus.
Cerro Colorado Copper Mine Workers to Go on Strike in Coming Weeks. Cerro Colorado copper mine’s labor union said workers plan to go on strike for 24 hours in the coming few weeks, wenhua.com reported.Workers at BHP Billiton’s Cerro Colorado once blocked the road to mining area. BHP Billiton plans to sell the Cerro Colorado copper mine.
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