July saw some base metal commodities skyrocket higher, while certain mining companies had to re-evaluate their strategies.
The hot July weather saw base metals smashing price records and reaching major highs.
Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) also felt the heat, revealing that it needs to go back to the drawing board regarding the underground mine design for its Oyu Tolgoi copper asset.
For more on the news that affected the sector, watch the video above or read the transcript below.
Basking in the spotlight in July was nickel, which reached a one year high of US$14,220 per tonne near mid-July. As investors worried about a supply shortage on the horizon, the commodity continued upwards to later reach highs of US$14,675.
As of July 22, nickel was trading at $14,305.
Also seeing prices climb this month was Rio Tinto, which revealed that the underground mine at its Oyu Tolgoi copper project in Mongolia will require extra cash and more time to build.
Due to potential stability risks, the company is considering other mine design options, which in turn has pushed expected spending from US$5.3 billion to a range of US$6.5 billion to US$7.2 billion.
As of July 22, copper was trading at US$6,007 per tonne.
Similar to nickel, iron ore found itself breaking price records this month. Climbing on the back of supply concerns, iron ore prices hit a five year high early this month when they climbed to US$123.19 per tonne. While the base metal has yet to surpass that high since, pricing has remained near the US$120 mark.
For more on the base metals sector, check out the Investing News Network’s Q2 price update for copper, along with half-year updates for nickel and zinc. The updates include expert opinions on price influencers and supply and demand dynamics.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.