Today’s Market View


SP Angel . Morning View . Wednesday 26 01 22

Metals make unexpected gains ahead of China New Year

IGTV: IG Outlook 2022, China new year, winter Olympics may see metals prices soften: (12/01/2022):

VOX Markets: 12/01/22:

interactive Investors: FTSE 100 favourite stock: 2022 outlook:

Three small-cap mining share tips for 2022:

*SP Angel almost invariably acts as nomad or broker or nomad and broker to companies mentioned in the above videos and podcasts.

We speak more about these companies as we have a good understanding of their business and can talk with a greater degree of confidence. As ever, however, it should be noted that our views do not take into account the circumstances and needs of any particular investor or investor type. So enjoy the talks, but please do your own research, including other companies not mentioned by us but operating in the same areas, and get professional advice where appropriate.

Metals prices are unexpectedly strong in the lead up to China’s Lunar new Year and the Winter Olympic games in and around Beijing

Gold is edging higher with yet more ETF investment and the Ukraine situation

Prices for copper and iron ore are stronger than most would have expected with copper at US$ 9,881/t and iron ore at US$136.7/t

Battery metals continue to post gains with llithium carbonate at an incredible US$55,750/t

EV sales are expected to hit 10m in 2022 depending on availability of semiconductors, lithium, graphite, cobalt, nickel, NdPr and a few other metals

Nickel prices also saw a strong rise overnight to US$ 22,470/t with tin following at US$ 41,945/t

Energy metals also doing well, prompted by the high level of gas prices in Europe combined with expected shutdowns in China

How will Germany buy Russian gas if the US has cut its ability to wire money to Gazprom in Russia to pay for its fuel?

China has also ordered cuts on steel and other smelters in Tangshan 200km from Beijing as air quality deteriorates.

Aluminium rose to US$ 3,113/t from US$3,051/t yesterday and zinc also rose to US$ 3,609/t from US$3,575/t yesterday

Even vanadoium prices are rising with European ferro-vanadium rising to 38.25/kg vs US$37.25/kg

Battery News

China connected 16.9GW off offshore wind capacity in 2021

The latest data from China’s National Energy Administration has shown, the country connected 16.9GW of offshore wind capacity to the grid in 2021.

This is an enormous increase on the 3.06GW that the country installed in 2020 – reaching a total capacity of 9.89GW by the end of that year.

China now has around 26.8GW of connected offshore wind capacity as of the end of 2021.

With current figures, there is 52.2GW of connected offshore wind capacity globally, meaning more than half of this capacity is installed in China – the figure is expected to change as installed capacity in other markets is disclosed.

China is now firmly the world leader in terms of both installed and connected capacity and has more than doubled the gap between the second-placed UK which had 10.2GW of installed offshore wind capacity at the end 2020.

Offshore wind growth is expected to slow significantly in China from 2021 rates, as developers had raced to connect this new capacity to the grid to meet China’s Feed-in-Tariff deadline which expired on 31 December.

GM moves to double EV pickup production with $6bn investment

General Motors is planning to spend $4bn converting its Orion Assembly factory to produce plug-in trucks.

GM will also spend $2.6bn on a battery factory in partnership with LG Energy Solution. (WSJ)

The company hopes to invest $35bn in EV production through 2025, with an intended factory capacity of 1m EVs.

Bentley to invest £2.5bn to realise ‘green dream’

Luxury car manufacturer, Bentley, will invest £2.5bn into their Crewe manufacturing plant as it plans to become a fully electric brand by 2030.

Bentley, which is owned by Volkswagen, announced its electrification target in 2020:

its entire range will offer an electrified hybrid option by 2024, and the first fully electric car to be launched in 2025.

exclusively plug-in hybrid or BEVs by 2026.

and only BEVs by 2030, when the government bans new petrol and diesel vehicle sales.

“It’s an ambitious and credible roadmap to carbon neutrality of our total business system, including the shift to 100 per cent BEV in just eight years” said Bentley CEO, Adrian Hallmark.