Glencore CEO on Commodity Bull Market

Glencore's Glasenberg full interview, fast forward to the one-hour eleven minute mark.

Summary:

  • Infrastructure spending in both China and U.S.A will boost commodities.
  • COVID-19 continues to impact supply.
  • Lower grades and more difficult jurisdictions impact supply.
  • China stockpile supply is temporary as they need to restock eventually.
  • 80% of the world energy demand needs to be replaced from fossil fuels to renewables.
  • Renewable energy needs to transition: 3000 GW to 26500 GW in 2050.
  • Solar Panels: 20 times more demand.
  • Electric Vehicles: 18 times more demand to 55 million electric vehicles.  
  • Wind Turbines: 11 times more demand.
  • Copper: 30 million tonnes of demand per year today. 1 million tonnes per year increase per year needed to arrive to 60 million tonnes of copper per year.
  • Nickel: 2.5 million tonnes per year today to increase to 9.2 million tonnes per year.
  • Iron Ore: China is pushing their companies to increase iron ore supply for green energy (wind turbines and electricity pylons). 

Comments

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