General / Saudi newspapers / third addition
Monday 12/1/1442 AH corresponding to 08/31/2020 AD, SPA
Al-Eqtisadiah newspaper said in its editorial entitled (Trade war and supply chains): Markets and economic sectors of all kinds have suffered from the Kurna pandemic, but this effect is not direct in any case, meaning that the decline in economic sectors was not to the same extent, nor for the same reasons, as well. The big closure, or precautionary measures, was not the direct and main reason for the decline of the minerals and mining sectors, but rather it was entirely due to the problem of supply chains, and this problem was not related to the minerals sector in light of the Corona pandemic, as it preceded it before. According to a report reported by Al-Eqtisadiah, the prices of copper, nickel and zinc on the London Metal Exchange lost between 9 and 14 percent of their value since the beginning of the year until the end of the first quarter, due to weak demand and low levels of manufacturing resulting from trade negotiations, especially between China. And the United States, tariffs escalating.
And she continued: But by the first half of 2020, the condition of the sector was worse as a result of the epidemic, and also not due to the direct impact, but by stopping transportation and movement, which led to a decline in the construction, automotive and manufacturing sectors, and that this decline led to a reduction in demand for steel and copper. Aluminum and other metals.
She added: The steel industry and aluminum smelting were also affected, and in general, as a result of this situation, Chinese industrial output decreased. The minerals sector witnessed a decline in the volume and value of deals in the first and second quarters of this year, and the total value of deals in the first half of 2020 amounted to no more than $ 5.9 billion, down 81 percent compared to the first half of 2019, and the number of deals in the half The first of 2020, 271 deals compared to 309 deals in the first half of 2019, a decrease of 12 per cent, and this result provides evidence that the safety of supply chains is the main driver of the minerals sector, and provides additional evidence of what health measures can do in sectors. Concerned with far-reaching effects in other sectors.
She indicated: With the decline in car sales at the international level, mining and nickel refining facilities were disrupted on a global scale, supply decreased by more than 1 percent, the market turned into a supply surplus, and inventory swelled, and the decline in sales of electric-powered vehicles, in turn, led to Decreased demand for lithium and cobalt, for use in electric cars. This is a complete supply chain problem. The problem that afflicts one sector will not be spared from which another sector represents its downstream.
// Continued //