Carbon Net-Zero Goals Affecting the Prices of Platinum, Copper and Lithium

Carbon Net-Zero Goals Affecting the Prices of Platinum, Copper and Lithium

Summary:

  • Despite the supply shortage of Platinum due to the Russia-Ukraine conflict, the futures prices are still falling.
  • Despite Copper demand increasing the price has fallen.
  • Lithium is a key commodity to going net-zero.

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Platinum futures prices falling despite tightening of supply.

The price of platinum futures have consistently been falling over the past week. There is a strong undersupply of platinum in the world with Russia being the second largest world supplier of platinum, in spite of this, the price of platinum has still been falling the past week. In times of economic uncertainty the price of platinum tends to decrease due to the decreasing demand along with investors starting to back out of carbon-intensive industries, both of which are causing the price of platinum to fall.

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Platinum Futures Price Chart


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Copper demand increases.

The required need for copper and other mining metals set out by the Paris Agreement forecast is putting pressure on the supply of copper but driving demand upwards at the same time. Causing an impressive price hike. The need to clean the carbon-intensive sector that copper is a part of versus the increasing demand is causing the volatility in the price of copper futures that we see below.

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Copper Futures Price Chart


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Global Lithium will be a key ingredient for reaching global net-zero.

The battery metals industry which includes Lithium, is being backed by major developed economies, especially due to the war between Russia and the Ukraine putting pressure on the supply of these metals. Lithium is also going to prove to be a necessary metal for the transition to clean-energy. This increase in demand caused the price to increase earlier this week, however the recent drop in prices came as a result of market sentiment and economic conditions over the past days.

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Global X Lithium ETF Price Chart

Sources: Finance.yahoo.com

Rebecca Duthie

Rebecca Duthie

Remote Editor and writer Intern
FXMAG.COM

Rebecca has a bachelors degree in Investment Management, a Post Graduate Diploma in Financial Planning and is currently enrolled in a Masters program in International Management with a Specialization in International Finance.