WA Index

During the month of February, the commodity market was characterized by significant downward movements in the prices of metals, notably tin, nickel, and cobalt. Energy also exhibited a decline due to weaker demand in Europe and China.

• Cobalt dropped a substantial 31% to US$33,746/T across February. This was largely due to the Chinese electric vehicle market's transition from cobalt battery chemistry toward non-cobalt batteries. Additionally, excess supply from mines in the Democratic Republic of Congo and Indonesia contributed to increased inventory levels.
• LNG decreased by 25% to US$14/MMBtu across February, due to a sluggish start to 2023 coupled with a significant accumulation of natural gas storage in European nations. Further, South Korea decreased its LNG imports as its nuclear plants resume operation after extended maintenance shutdowns, with its new administration advocating for increased use of nuclear power.
• Thermal Coal decreased by 21% in February to US$193/T. Milder weather and stable levels of non-Russian supply have brought down gas prices across Europe, whilst the US has felt the effects of growth in renewables, stagnant electricity consumption and continued coal retirements.
• Nickel decreased to US$24,591/T, representing a decrease of 18% during the month. Central bank policy of developed nations, particularly the Federal Reserve, and changing market dynamics aided in the volatility of the short-term nickel price. Production has increased significantly since the beginning of the year to meet the growing demand from electric vehicle (EV) battery producers, resulting in an oversupply.
• Praseodymium decreased to US$117,800/T, an 11% decrease in February. The rare earth market has experienced a decline due to weaker customer demand than anticipated. Additionally, rare earth production has started to increase with inventory build underway.
• Uranium bucked the negative trends this month, increasing by 1%, up to US$51/LB across February. The commodity hit a three-month high in mid-Feb, impacted by waning demand in other mined energy commodities driven by higher interest rates. Supply remains strong, with the reopening of Cameco’s McArthur River mine-the largest uranium mine in the world. 

The top Deloitte WA Index Movers and Shakers in January were:

• Catalyst Metals Ltd (ASX: CYL) soared 35% after announcing its purchase of Superior Gold Inc and its purchase of the remaining shares of Vango Mining Ltd. The acquisition is expected to bring considerable exploration potential, world-class gold in WA, and a compelling opportunity to maximize value from the Plutonix-Marymia gold belt.
• SRG Global Limited (ASX: SRG) successfully raised $46.4m to partially fund the ALS asset care acquisition, with investors' demand exceeding expectations, driving it’s 24% movement across the month. In addition, SRG secured various high-value contracts with Northern Star, Victoria Department of Transport, and CBGU JV Contractor group during the month. 
• Lycopodium Limited (ASX: LYL) market capitalisation rose 22% off the back of strong half year results. Comparing this half year to the prior year half year, Lycopodium reported healthy growth in revenue, EBITDA, NPAT and earnings per share. This growth attributable to the company’s significant portfolio of global projects as well as the winning of a number of new projects and studies.