Pedal to metal

2 November 2017 By Clara Ferreira-Marques

The frenzy over electric cars is helping push copper, nickel and cobalt prices to their highest in years. An expected supply squeeze is also a factor. After frolicking in London this week, global miners get a shot to prove they’ve learned from cycles past and can use cash wisely.

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LME Week, the annual gathering of the global metals community, is taking place in London the week of Oct. 30.

On the London Metal Exchange, the prices of metals including copper, nickel and zinc are at multi-year highs. Copper <CMCU3> broke through the $7,000 mark for the first time in three years on Oct. 16, and is still trading at close to those highs. Nickel <CMNI3> is trading at over two-year highs.

Prices for cobalt metal <COB-CATH-LON>, used in production of electric vehicle batteries, have tripled to nine-year peaks above $30 a lb from below $10 a lb in late 2015.

Equipment maker Caterpillar <CAT.N> on Oct. 24 reported increased order activity from mining customers in its third quarter, and higher demand for parts, as trucks are used more intensively. Komatsu <6301.T>, which bought mining equipment maker Joy Global last year, said on Oct. 27 it was also seeing signs of recovery in demand.

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