Latest Insights

The impression of Russia and Ukraine’s war on the alumina trade

The global alumina trade

Alumina is a result of bauxite refining, and it’s consumed as the raw material for aluminum production. Alumina’s transportation cost is lower than bauxite transportation and has more economic efficiency, leading to the aluminum producer countries providing their requirement as the alumina and because of that this material is traded with a high volume in the world.

The presence of the biggest bauxite deposits in Brazil and Australia turned these two countries into the largest alumina exporters in the world. However, the import of alumina isn’t exclusive and many countries are its importer in the world, but the largest exporter destinations for it are Russia, Canada, and China. This coming year won’t be stunning for the global alumina trade because of the expensive energy in Europe due to the war between Ukraine and Russia, consequently the reduction in alumina production in the world and stopping the export of this material from Ukraine to Russia lead to the drop in its trade and makes an unclear future for this trade.

October 9, 2022 Aluminum

The downward trend of mineral production and the significant growth of gold consumption in China

The top producers and consumers of gold in the world

Investment security and high profit margins have always attracted governments and public to gold trade. The high profit margin of gold production makes countries that have gold reserves seek to continue and increase production. Central banks are considered to be the main gold consumers as a financial support and people use it with the purpose of investment and ornamental.

The production and consumption of gold has increased y/y in 2021, which caused by the drop of pandemic disruption. China will continue to be the largest gold producer and consumer in the world in 2021. Overall, the production volume of mineral gold has increased by 3% y/y in 2021, and the consumption volume has increased significantly by 47%.

September 7, 2022 Precious Metals

Keeping production levels despite environmental restrictions

China's lead production in q2 2022

The analysis of China’s lead ingot production statistics in q2 2022 indicates a relatively significant growth in production y/y. Although the review of cumulative production statistics until the end of H1 2022, shows not significant difference in the production volume during the H1 of 2022 and 2021.

With the Covid-19 outbreak in March 2022, the increase in demand has occurred due to the lack of supplying goods following the consequences of the pandemic, and this caused the inventory to decrease by 4% in March, reached 4.4kt. Therefore, the production growth in May 2022 compared to 2021 was aimed at compensating the inventory drop in and meeting demand.

September 2, 2022 Lead & Zinc

Global crisis of copper market during Russia-Ukraine conflict

The impact of Russia-Ukraine conflict on the global copper market

Russia, as one of LME copper supplier, plays a key role in the supply of European copper, and the sanctions imposed after Russia-Ukraine conflict and the lack of purchase from Russia’s producers have faced Europe with a copper deficit and the copper price increased to over $10,000/t over the period.

The geopolitical tensions between Russia and Ukraine, followed by growth of the US interest rates and other central banks due to the higher global inflation, increasing the copper price at a certain point. The surge in fuel price led to a growth in transportation cost and other production costs, which also had an effect on the higher price of commodities, including copper.

August 14, 2022 Copper

Steel takes over the graphite electrode trade market

Trade of graphite electrodes

Graphite electrode is used in two sectors of electrical consumption and metal products, including silicon metals and steel, by the electric arc furnace (EAF) method, which considering the growth of related industries, including the aviation, electronics and packaging industry, the market of graphite electrodes is expected to experience an upward trend.

The global import and export volume of graphite electrodes was around 2.6Mt and 3.6Mt, respectively, in 2021 Iceland is the largest importer with an import share of 17% and China is the largest exporter of graphite electrodes with 65% of the market share.

August 3, 2022 Crude Steel

Sudden drop in zinc production in June 2022

View on China’s zinc production

China with having about 30% of the world’s zinc production turned into the largest zinc producer. Also, this country accounts for 48% of zinc metal consumption in the world, therefore it’s considered the biggest consumer of this metal, too.

China’s zinc production in April has 1.28% reduction in 2022 and in the same year just one month later has faced 3.79 increase, despite this fact that amount of production in June was lower than expected, the total production of these two months was able to solve it due to increase in May production.

July 28, 2022 Uncategorized

The prominent role of inorganic fluorine compounds and cryolite in the aluminum industry

Global cryolite trade

The export of synthesis cryolite in 2021, is estimated about 110,000 tonnes which Canada with having 21% of market’s share, is known as the biggest cryolite exporter in the world and the USA has got 99% of Canada’s export share so it’s the largest destination for it.

The global import level of synthesis cryolite in 2021 had been about 106,000 tonnes that the share of the USA of this import is about 29% and this turned it into the largest importer and Canada and Mexico is the biggest supplier for these countries.

July 27, 2022 Aluminum

The growing demand for enamelled wire along with the fall in its trade

Global trade of enamelled wire

Germany, China, and Italy are among the main exporters of enamelled wire in the world. On the other hand, with the exports reduction over the recent years, the US has started to import higher volume and hit a peak compared to other countries in 2021, which could be due to its growing demand.

July 23, 2022 Copper

Global alumina production fueled the war between Ukraine and Russia

Alumina production in different regions

The war between Ukraine and Russia and the subsequent lack of natural gas supply in Europe caused a sharp growth in the price of energy carriers, thus, led to a global drop in alumina production, especially in Europe and South America. Under these circumstance, the market is expected to face risks in near future.

China is the largest producer and consumer of alumina in the world, and the smallest changes in the country will have a significant impact on the production and supply of global alumina. On this basis, there is a great reduction in global alumina production in February, because of Chinese New Year, which decreased around 1Mt in 2021.

June 22, 2022 Aluminum

The prominent role of lithium in the electric vehicle industry

Global production and trade of lithium

Following the growth of lithium batteries that are consumed in the electric vehicle industry, the production and trade of lithium metal has undergone significant changes and the largest share of the production of this metal in the world belongs to Australia; while most lithium reserves are found in Bolivia.

The global volume of lithium reserves is reported to be around 22Mt in 2021, and the largest reserves of this element are located in the countries known as the lithium triangle. It is worth mentioning that, South Korea and China are the largest global importer and exporter of lithium, respectively. The application of this metal, which is light and has superconducting properties, is mostly in the field of rechargeable batteries. Due to the market growth of electric and consumer vehicles in which lithium is used in the batteries of these vehicles, the production volume and its demand is expected to increase over the coming years.

June 15, 2022 Lithium

FOX Currency Switcher