In this week’s digest, we examine the modest growth in PGM production at Unki Mine, analyze the implications of the rise in Chinese electric car imports on European aluminium demand, and report on the increased interest of Western traders and banks in Russian metals.
Unki Mine’s PGM Production Sees Slight Rise
Unki Mine reported a 1 percent year-on-year increase in platinum group metals (PGM) production, reaching 182,000 ounces by September 2023. This growth is attributed to the mine’s completed debottlenecking project in 2021, which had a project cost of US$48 million. Projections indicate that by the end of 2023, the PGM production at Unki is set to reach 250,000 ounces.
Chinese EVs Pose Threat to European Aluminium Demand
The influx of electric vehicles (EVs) from China could impact the demand for aluminium in Europe, warns Norsk Hydro’s CEO, Hilde Merete Aasheim. Aluminium is prominently used in EVs to offset the heavy battery, enhancing the vehicle’s mileage. Recent data reveals that the average European-made electric car in 2022 contained significantly more aluminium compared to traditional internal combustion engine vehicles. The surge of Chinese EVs in the European market is also influenced by China’s strategy to build battery factories beyond their domestic requirements, thus directing excess supply to overseas markets.
Western Banks and Traders Eye Russian Metals
Amid no Western sanctions on Russian metals, several Western banks and traders are displaying increased interest in dealing with Russian metals, as reported by Bloomberg. Notably, Trafigura Group is becoming a significant competitor for Glencore, a major buyer of aluminum in Russia. Large volumes of Russian aluminum have also found their way to the London Metal Exchange, attracting buyers like Citi and Squarepoint Capital.
