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Big mining companies like BHP, Rio Tinto, Anglo American and Glencore are enjoying the world’s booming economy. Higher demand is coming for coal and metals used to produce electric cars. Stronger economic growth in the U.S., Europe and China has been the biggest catalyst to improved miner performance. The Wall Street Journal reports:
The metals market has been buoyed by a rare period of synchronized economic growth in China, the U.S., Europe and major economies elsewhere. Also helping: a chilly Chinese winter that fueled coal purchases, the industry’s expectations of a global infrastructure push and a weaker U.S. dollar, which is the currency used to buy most commodities. A weakening dollar allows international buyers to purchase more.
Rising expectations of a coming surge in electric-vehicle sales have also increased demand for the raw materials used to make the vehicles’ batteries. Cobalt, an important ingredient in lithium-ion batteries, has more than doubled in price over the past year. The price of nickel, another key ingredient, is up 20%.
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