Kazakh mining company Eurasian Resources Group (ERG) predicts a positive outlook for key metals like copper, aluminum, and cobalt through 2025, fueled by increasing demand from renewable energy, consumer goods, and the electric vehicle (EV) sector. The company highlights China's significant investments in clean energy and its projected economic growth as key drivers for this expansion.
Kazakh mining company Eurasian Resources Group (ERG) shared its market expectations for 2025 and beyond on social media, emphasizing anticipated growth across key metals driven by advancements in renewable energy , consumer goods, and the automotive sector. The company forecasted a 4% year-on-year increase in the global copper market for 2025, with a compound annual growth rate (CAGR) of 2.5% projected between 2024 and 2034.
This growth is attributed to the rising demand for copper in renewable energy applications and infrastructure development. The development of renewable energy sources, such as wind turbines, coupled with record sales in home appliances and consumer goods, is expected to boost demand for stainless steel. ERG anticipates a 4.8% growth in demand in 2025, which will significantly benefit the ferrochrome industry. The company said that an average 3% year-on-year growth in aluminium demand is expected in 2025, driven by the automotive industry's shift towards lightweight materials and the increasing adoption of renewable energy technologies. While the cobalt market is currently in surplus, the global electric vehicle (EV) sector is projected to continue its expansion, potentially representing over 60% of cobalt demand by 2030. This trend could lead to market deficits as demand for cobalt outpaces supply by the end of the decade. ERG emphasized the importance of future incentives for EVs and policies such as the European Green Deal in shaping the market landscape for 2025 and beyond. AI demand As AI becomes more mainstream, it is anticipated to boost metal demand substantively. According to Bloomberg commodities insights, data centers in North America alone could increase copper demand by 1.1-2.4 million tonnes as for 2030. ERG maintains a neutral-to-bullish outlook for key metals in 2025. However, this perspective is contingent upon macroeconomic trends, including the economic situation in China, potential trade protectionist measures, and US monetary policy. The company noted that while the pace and consistency of economic recovery may be uneven, but the long-term fundamentals for metals and minerals in ERG's portfolio remain promising.China's role The International Monetary Fund forecasts China's GDP to grow by 4.6% in 2025, while Kazakhstan's GDP is expected to increase by 5.5%. These developments are significant, considering China's substantial investments in clean energy, which exceeded US$890 billion in 2023. 'GDP of Switzerland, where the annual World Economic Forum Davos meeting is taking place, is around US$800 billion,' Andrey Belov, head of PR & communications at ERG said on LinkedIn. 'China's investments in clean energy are more than US$890 billion (2023).' Such investments are likely to drive demand for metals like copper and aluminium. In September 2024, ERG secured a $150 million pre-export finance deal with Glencore International AG and the London Branch of Bank of China Limited. The agreement is supported by a supply arrangement for copper cathodes from ERG's Metalkol facility in the Democratic Republic of Congo. Less bullish on steel Despite ERG's somewhat optimistic outlook, the metals industry is not short of its challenges. Analysts have observed a decline in China's commodities supercycle, which had driven metal prices for two decades. In 2024, China's crude steel production was 1,005 million tons, down 1.7% compared to 2023, GMK Centre reported. According to Reuters, this is the lowest figure in five years. This could indicate that China's economy will require new drivers beyond the property sector, as current stimulus measures have not spurred a new wave of construction to boost steel
ERG Eurasian Resources Group Metals Copper Aluminum Cobalt Renewable Energy EV China Economy Market Forecast
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The 2025 Presteigne Festival will take place from August 21 until 25 in 2025The 2025 Presteigne Festival will commemorate the 50th anniversary of the death of Dmitri Shostakovich (1906–1975), one of the most significant Russian voices of the 20th century, with a special focus on his music.
Read more »
EA Sharpely Cuts Revenue Forecasts for 2025Electronic Arts has significantly lowered its projected revenue for the 2025 fiscal year, citing underperformance of both EA Sports FC and Dragon Age: The Veilguard. The company attributed the slowdown in EA Sports FC to a decline in live service net bookings, primarily from microtransactions and DLC sales, while Dragon Age: The Veilguard saw a player engagement drop of nearly 50%.
Read more »
Integra Resources Sets Sights on 2025 Growth with Florida Canyon Gold Mine and DeLaMar Permitting PushIntegra Resources is poised for a transformative 2025 with the acquisition of the Florida Canyon gold mine in Nevada and the renewed leadership of CEO George Salamis. The company plans to leverage cash flows from Florida Canyon to expedite permitting for its DeLaMar gold-silver project in Idaho, capitalizing on favorable conditions under the Trump administration. DeLaMar boasts a measured and indicated resource of 4.8Moz and is expected to contribute to Integra's production alongside Florida Canyon, which achieved record output in 2023.
Read more »
MMG Reports Strong 2024 Production, Guides for Continued Growth in 2025Mining giant MMG released its 2024 production results, highlighting a significant increase in copper output driven by the Las Bambas mine. The company also provided guidance for 2025 production and costs across its portfolio, signaling continued growth and operational efficiency.
Read more »
Popeyes UK Sets Sights on Explosive Growth in 2025Popeyes, the Louisiana-style chicken restaurant chain, is aggressively expanding its presence in the UK market. The brand plans to open new dine-in restaurants, drive-thru locations, and delivery kitchens to meet the growing demand for its flavorful chicken burgers and tenders.
Read more »
Bridgnorth firm's major strategic investment set to pave way for 2025 growthA manufacturer is targeting emerging markets this year as it brings a £2m technology investment online.
Read more »