Energy The oil market continues to trade in a largely rangebound manner, with the market still waiting to see how Iranian nuclear talks progress. Yesterday’s EIA report was fairly constructive, with inventory drawdowns reported in crude and products. Crude oil stocks fell by 1.66MMbbls over the last week, with refiners increasing utilisation rates slightly over .
Copper price keeps soaring while ICSG predicts 79,000 tonnes surplus in 2021
The copper price topped $10,000 a tonne for the first time since 2011 on Thursday. (Stock Image)
The global copper market should see a surplus of 79,000 tonnes this year and of 109,000 tonnes in 2022, the International Copper Study Group (ICSG) said on Monday.
“After three years of remaining essentially unchanged, world copper mine production, adjusted for historical disruption factors, is expected to increase by about 3.5% in 2021 and 3.7% in 2022,” ICSG said in a press release.
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Credit: ICSG
“In 2021, global output is expected to recover from 2020 constrained levels and benefit from increased supply resulting from the ramp-up of recently commissioned mines,” ICSG said.
Will it Be Better to Trim Positions in Turquoise Hill (TRQ) for the Time Being?
Massif Capital, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 15.8% was recorded by the fund for the Q4 of 2020, above its MSCI ACWI benchmark that returned 14.68%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Massif Capital, in their Q4 2020 Investor Letter said that they constructed a collar in their position in Turquoise Hill Resources Ltd. (NYSE: TRQ), selling call options for 2022 at a $20 strike and using the proceeds to buy January 2022 puts on the position at a $7 strike. Turquoise Hill Resources Ltd. is an international mining company that currently has a $2.1 billion market cap. For the past 3 months, TRQ delivered a decent 35.79% return and settled at $10.70 per share at the closing of January 27th.
MINING.COM’s most popular stories of 2020
What was the talk around the water cooler / grinding mill this year? Image: Glencore
Even setting aside the disruptions and uncertainty created by the pandemic, 2020 was a tumultuous year on mining and metals markets. After the depths of March and April the industry entered the final stretch amid talk of the
MINING.COM’s growing community – more than seven million readers during the year – is also an indication of how mining is growing in importance within the broader world as green energy, and with it, copper and battery metals play an ever more central role in our lives.