Commodity prices are being walloped. For a nation like Australia that relies upon mineral exports, the consequences could be significant.
Chris Ellison became an overnight celebrity a few weeks ago, splashed across newspaper websites across the globe.
The company, more than most, has been caught in a vicious squeeze all year as a winter in commodity prices threatens to undermine the foundations of a corporate edifice Ellison has spent years building. "What we've seen in iron ore and more so metallic coal is prices have come at least 40 per cent I think since the start of the year, really quite a substantial drop in those two key commodities," he said on ABC's Insiders.
"This is a real sign of weakness in the global economy, uncertainty and volatility and risk in the global economy and we're not immune from it and nor is our budget," the Treasurer said.A rumour spread through global markets that CATL, a big Chinese firm manufacturing electric vehicle batteries, had shut two of its lithium operations in central China.
Australia, with some of the world's biggest and best lithium deposits, was signed up as a partner nation in America's Inflation Reduction Act, part ofIn mining, during downturns, it becomes a poker game as players await those with the highest operational costs or the biggest debt burden to shut mines. The reduced supply then sends prices higher.
While some are hoping the recovery will continue, the lithium price still need to rise about 40 per cent for most new lithium mines to stop being drained of cash, let alone make a profit.It's been our biggest export earner for most of this century. But its influence on our economy and living standards is likely to diminish over the course of the next few years.
Slump Prices Minerals Iron Ore Lithium
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