ASX: VXR

Surging demand for base metals and low stockpiles indicate that base metals are well and truly back in favour.

Base metals have multiple applications and are a critical part of our everyday lives from switching on your television to driving your car and keeping your refrigerator cool. New technological advancements such as batteries and electric vehicles will continue to drive demand in to the future.

Today’s society relies heavily on base metals – the recent low prices in base metals which caused many mining operations to close has led to a deficit which has pushed prices significantly higher.

Renewed demand from China, which uses 50% of all global base metals, has fired the sector up meaning that companies with high quality, near-term projects will benefit significantly.

Copper

Copper is a highly ductile semi-precious metal with high thermal and electrical conductivity and excellent corrosion resistance, finding extensive use in construction, electrical appliances and industrial applications. Because of its high corrosion resistance, copper and its alloys are used extensively for the construction of gas and water pipes.

Zinc

Zinc is primarily used for its corrosion resistance in galvanising which accounts for approximately half of global zinc consumption. Metallic zinc is also used in dry cell batteries, die-casting, roof cladding and in the production of zinc oxide.

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