Critical materials markets 2021 outlook – by Daniel Sekulich (Northern Miner – December 10, 2020)

Global mining news

For 20 years, analyst Jon Hykawy has been looking at the global critical materials markets and providing advice to companies about the sector. The president of Toronto-based Stormcrow Capital spoke to The Northern Miner about what he thinks the new year will hold for this part of the mining industry.

The Northern Miner: What do you think the critical materials markets are generally going to be like in 2021?

Jon Hykawy: Well, I hope they will be improved. There’s an old adage that the best cure for high prices is high prices, and the best cure for low prices is low prices.

On the battery materials side we obviously had a weak period here with Covid striking demand in China, first, and then everywhere else thereafter. Lithium has been at a low ebb for a period of time.

Contrary to what some have said, there really isn’t any more room for lithium prices to decline and, in fact, currently prices are moving up in China. And a number of the suppliers are actually withholding sales at this point, waiting for higher prices.

As far as cobalt and nickel go, we’re fairly confident demand is going to increase, and that’s going to drive up the price, because we don’t have a massive supply response in behind either one of those materials.

For the rest of this article: