Sunday, 26 April 2015

Commodities, US Dollar and FED: Steen Jakobsen: Get Ready For The Biggest Margin Call In History.

  This warning comes from CIO of Saxo Bank. I found the situation with copper particularly interesting at this point of the economic cycle. If economy is so strong that all markets, apart from commodities, are hitting new ALL-Time-Highs - why Copper is still not participating in this party? It looks like Copper and other Green Metals becoming the win-win proposition now. If economy really has started to grow they will participate, additionally driven by green technology demand. If economy happens to be weak, another round of stimulus will come - this time from China. Infrastructure development will be the key for the future economic growth and demand for metals. Now China is driving it with AIIB and 1 Trillion in projects to spur growth!
  This year will be very interesting with US Dollar sliding below 97.00 last week, after 96.24 the Double Top Reversal will be confirmed and technical crowd will drive it lower pushing commodities higher. Is Oil already indicating this scenario? The money flow in Solar and Lithium Energy Storage from Apple, Google, BYD with Warren Buffett and Tesla will drive the new green metals super cycle.

Copper, Lithium And REE: SunPower And Apple Are Teaming Up To Build Solar Projects In China.

Apple is moving fast into Solar space now and brings attention to the rapid growth in Solar Power installations all around the world. China is particularly important market with its huge air pollution problem. This is where the clean electricity will come from to charge electric cars. With Tesla Gigafactory coming announcement for the home lithium battery to integrate solar installations, this huge segment of growth for the lithium technology will gain further traction. 
  As we have discussed before, Solar Power will be the catalyst for strategic green energy metals: Copper, Lithium and REE. Backed by Warren Buffet China's BYD is another contender to capitalise on the growth in utility storage. International Lithium strategic partner Ganfeng Lithium is taking its part in this growing sector as well with the investment in Boston Power and supplies Lithium materials to the major players in battery industry. 

International Lithium Corp. Commences Drilling at Avalonia Lithium Pegmatite Project, Ireland.

 Molycorp will supply Shin-Etsu Chemical with REE, which will produce REE magnets for Siemens. Like in International Lithium case with Ganfeng Lithium - security of supply for strategic materials is taking the centre stage for advance of the green technology.

Copper's Bright New Age: Solar Electricity Utility Scale And Electric Cars.

"Investment growth in solar electricity is dramatic, and along with wind it will dominate the worldwide energy scene within a few decades. Copper demand will increase because of the growing use of solar electricity. Solar power is among the quickest to build, creates jobs, community benefits, new tax revenue for small towns. Air conditioning and peak energy demands align with when the sun is shining. The USA, China and Germany are aggressively adding solar power. Copper is either the only choice or the quality technology choice for solar parks due to its conductivity, durability, malleability and so on."

  Copper and Lithium become the strategic metals for the ongoing green revolution. Solar and Wind Energy and Electric Cars will drive the new demand for these metals. Solar Energy is growing very fast all over the world now. Energy Storage will be the next step to ignite this growth. This is the new focus of Elon Musk and his Gigafactory. He will introduce the home storage system based on the lithium batteries in the next few months. Copper will have its special place in this mass scale roll out of distributed energy generation systems with Wind and Solar Power. Integral part of this system - Energy Storage is getting popular now with Elon Musk Gigafactory and Warren Buffet with BYD making the headlines. These Trillion Dollar industries: Electric Cars and Energy Storage will drive the demand for Copper and Lithium in the future.

Copper Surges As Freeport Halts Grasberg Mine - The Looming Supply Gap Comes Sooner.

 "Copper is in the very tight supply now and price is surging for the second day. This example just shows that resource nationalism is not going away. Security and diversity of supply will be the key. When Dr Copper will buy into the recovery story? Nobody knows it, but I doubt that FED can start any meaningful rate hikes before Copper will go back above $3.0 mark. FED is not driven by commodity prices, but there is no real growth before commodities will turn up again. Copper takes the particular place now as electrification of our transportation and introducing Solar Power on the mass scale will be driving the demand in years to come. Industry insiders will be our guide as usual here. Just follow the smart money, as this supply gap can be coming much sooner now. Read more."

Backed By Warren Buffett China's BYD Takes Aim At Elon Musk's Tesla Gigafactory In Battery Race.

  "Our industry is getting hotter by the day. After Apple Electric iCar rumours running wild and getting more and more confirmation, we have Warren Buffett stepping into the Lithium Battery Race. Now we have Tesla with its Gigafactory, LG Chem with its Megafactory in China and Boston Power with stake holding by or strategic partner Ganfeng Lithium in Lithium Battery Race. BYD with Warren Buffett backing is making this investment landscape even more exciting. As Elon Musk has said: "All transportation, apart from rockets, will be electric" Read more."