The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

The cheaper it is to heat a house in Ukraine

Due to the sharp increase in natural gas tariffs, the overall picture of the cost of heating in Ukraine looks different. The layout reflects a similar calculation table:

Note. Electricity tariffs are indicated on the basis of 2 conditions: according to all the rules, electric heating is arranged in the dwelling and energy consumption does not exceed 3600 kWh per month. Users consuming more than 3600 kW/h monthly pay 1.63 UAH/kW at the daily rate, and 0.82 UAH/kW at night.

The first place in terms of low cost of heating in Ukraine is occupied by firewood and electricity used at night. Further, energy carriers are located in this order (from cheap to expensive):

  • pellets and briquettes;
  • coal;
  • waste oil;
  • electricity at a daily rate (with consumption up to 3600 kW/month);
  • main gas;
  • liquefied gas;
  • diesel fuel.

As you can see, Ukrainians cannot count on cheap gas. It is worth noting that they are in the same position as the Russians, whose houses are not connected to the main gas because of the high price for this service. Both have to burn different types of solid fuel or use electricity at night.

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

By the way, at the moment, the state provides subsidies to the poor citizens of Ukraine, covering part of the heating costs. This allows many families to use natural gas economically without incurring the cost of refurbishing their home boiler room and switching to wood and coal.

The main options for heating the cottage 1. Main gas

This solution seems to be the simplest, but it can only be so if the site is initially gasified. Otherwise, the cost of laying the highway can range from 500 thousand to three million rubles per household: it all depends on the size of the village, the remoteness of the gas pipeline and other conditions.

Actually, gas is so far the cheapest type of fuel in Russia, but the ruble cost of its production is growing, and world prices tend to decrease. Therefore, it is difficult to predict the situation for a long time. We proceed from the fact that an adequate calculation of the cost of heating involves an analysis of costs over a sufficiently long period of time, taking into account repair and maintenance costs. In particular, for a country house it is advisable to consider a 50-year period of operation.

We will assume that for heating a two-story cottage with an area of ​​300 m2 with a kitchen, an automatic boiler with a capacity of 15 kW is needed.

The cost of such equipment from well-known manufacturers today is approximately 30,000 rubles. It needs to be changed every 10 years, that is, in 50 years at today's prices, 150,000 rubles will “run in”. Taking into account the cost of annual maintenance (approximately 5,000 rubles) - 400,000 rubles, or 8,000 rubles. in year.

With the cost of main gas 5.14 rubles / m3 (for the Moscow region) and the specific heat of combustion of 33,500 kJ / m3, the cost of 1 kWh of heat will not exceed 59 kopecks (taking into account the actual efficiency of the boiler, which is approximately equal to 92%) . During the heating season, which, for example, in the Moscow region officially lasts 215 days, for a cottage with an area of ​​300 m2, the need for heat will be 85,000 kWh, which will cost about 50,300 rubles. In total, taking into account operating costs, we get 58,300 rubles.

Total in the general case, we get 58,300 rubles. per year (provided that gas has already been supplied to the village).

What heating is more profitable in the Russian Federation

Before determining the cheapest way to heat, we list all the energy sources available to residents of the Russian Federation:

  • various types of solid fuels - firewood, briquettes (eurofirewood), pellets and coal;
  • diesel fuel (solar oil);
  • used oils;
  • main gas;
  • liquefied gas;
  • electricity.

To figure out which heating is the cheapest, you need to find out how much each energy carrier can release heat and how much it will result in, and then compare the data. To determine the most economical heating will help the table, which contains the results of the calculations:

Note. The prices in the table are taken for Moscow as of July 1, 2016. Due to constant increases in energy costs and currency fluctuations, the figures presented lose their relevance over time.

Anyone can perform such a calculation by substituting in the table the heat load on the heating system of their building and the cost of fuel in the region of residence. The calculation algorithm is as follows:

  1. Column No. 3 contains the values ​​​​of the theoretical heat transfer per unit of fuel, and column No. 4 - the efficiency (COP) of heating equipment using this energy carrier. These are reference values ​​that remain unchanged.
  2. The next step is to calculate how much heat actually enters the house from a unit of fuel. The calorific value is multiplied by the boiler efficiency divided by 100. The results are entered in the 5th column.
  3. Knowing the price of a unit of fuel (column No. 6), it is easy to calculate the cost of 1 kW / h of thermal energy received from this type of fuel. The unit price is divided by the actual heat transfer, the results are in column No. 7.
  4. Column No. 8 shows the average heat consumption per month for a country house with an area of ​​100 m², located in the middle zone of the Russian Federation. You must enter your heat consumption value for the calculation.
  5. The average monthly heating costs for housing are indicated in column No. 9. The figure is obtained by multiplying the monthly heat consumption by the cost of 1 kW obtained from various types of fuel.

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

The table shows 2 types of firewood commonly available for sale - freshly cut and dry. This will help you understand how profitable it is to heat a stove or boiler with dry wood.

Analysis of calculation results

The performed calculations show that the most economical heating for private houses in the Russian Federation is still provided by natural gas, this energy carrier remains unrivaled. Consider the fact that gas-using equipment is relatively inexpensive and at the same time is quite efficient and comfortable to use.

When using condensing boilers, efficiency can be increased by another 5-6% compared to conventional gas heat generators. True, condensing equipment will cost a lot (30-50% more expensive depending on the model).

The problem with gas in the Russian Federation is the high cost of connecting to existing pipelines. In order to economically heat a home, you will have to pay from 50 thousand rubles. (in remote regions) up to 1 million rubles. (In the Moscow region) for joining a gas pipeline.

Having learned how much the connection costs, many homeowners are thinking about how and with what to heat their house without gas. There are other energy carriers from the table, which are listed in ascending order of cost:

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

The use of purely electric equipment for round-the-clock heating of the house cannot be called profitable, since the cheap nightly rate is valid for 8 hours a day, and the rest of the time you will have to pay the full rate. So heating with electricity alone will not work out cheaply.

Comparative analysis by other criteria

In addition to the purely economic calculation of the cost of heating, there are other factors that influence the choice of energy carrier. For example, it is difficult for an aged pensioner to chop and carry firewood to the boiler room. Someone does not like the smell of diesel fuel or dirt from coal, and someone does not have the opportunity to store a supply of pellets or briquettes. That is, it is wrong to choose fuel for heating only from the point of view of economy. Additional criteria need to be taken into account:

  • comfort during operation;
  • the possibility of warehousing;
  • frequency and cost of maintenance.

Nuances of operation

It is most convenient to use electricity for heating, although it is difficult to classify it as an economical energy source. The electric boiler does not need supervision, the system is fully automated. The unit is easy to control remotely, and the boiler room is quiet, clean and free of unpleasant odors. An important point: the heating electrical installation does not need a chimney, which greatly simplifies and reduces the cost of installation.

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

In addition to the high price, electric heating has another disadvantage. Not every private house has sufficient electrical power or a limit has been set that does not allow the use of energy for heating. And the connection of units with a power of more than 6 kW requires a 3-phase input with a voltage of 380 V.

It is almost as comfortable to operate boilers that burn natural and liquefied gas. But they need a chimney and good ventilation of the furnace room. Burning diesel and used oil is no longer so comfortable, because an odor inevitably appears and periodic replenishment of the fuel container is required. In this regard, a diesel heat generator is similar to a pellet one, but the latter wins due to the absence of odors and dirt.

The champion of inconvenience is the wood and coal boiler, which requires constant attention and exercise. With the most economical way of heating with wood in the boiler room, burning smells and dust mixed with dirt cannot be avoided (this is especially true for coal). An exception is an automatic coal boiler, which operates on the principle of a pellet boiler, but it also needs to periodically replenish the bunker.

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

Automatic boilers: pellet (right) and coal (left)

About fuel storage

The nuances of warehousing and storage are easier to indicate in the list:

  1. The electric and gas heating system of a private house operates from external sources, storage is not needed.
  2. For reliable operation of any solid fuel boilers, a supply of fuel is needed, respectively, it is necessary to organize its storage. You will have to make a firewood shed under a canopy or a warehouse in a barn.
  3. The stock of diesel fuel and working off also needs to be stored somewhere and, preferably, outside the residential building. It is necessary to buy and install a container of sufficient volume.
  4. The most difficult thing is to organize storage with independent heating with liquefied gas as an alternative to natural gas. The cost of an underground gas tank and its installation will quickly make you forget about economical heating at home.

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

Putting a gas tank is not affordable for everyone, but constantly carrying cylinders to refueling is hard work

There is another, cheaper way to store liquefied gas - in cylinders. But "thanks" to the frequent replacement and refilling of cylinders, comfort when operating a propane boiler is equated to exercises with wood when loading a solid fuel heat generator.

Equipment service

Electric heating installations practically do not require maintenance (check and cleaning once every 2 years). If it weren’t for the draconian daily tariff, then with the help of electricity it would be possible to organize an “economical smart home” system. More often you will have to service gas boilers, they require annual preventive cleaning of the heat exchanger and chimney. But here you can save money if you clean the unit with your own hands, as described in this article.

Due to the low quality of diesel fuel, diesel heat generators will need to be cleaned as they become dirty, which can happen several times per season. The same applies to waste oil boilers, and the cleaning process is very dirty. Faced with similar problems in the middle of winter, you will think twice if you need economical heating for work.

It is advisable to clean the smoke pipes with the firebox of the boiler on wood and pellets once a week, and the ash pan - daily

When working on damp wood from the combustion chamber, it is important to remove soot and tar more often until they are completely boiled.

Varieties of heating systems

There are several ways to organize electric heating in your home. Each of them has its own advantages and disadvantages.Some are cheaper at the stage of purchase, and some save significantly during operation. Let's look at what features each method has:

Installation of an electric boiler designed to heat water flowing through the pipes of the heating system. Perhaps the most well-known method, but it is far from the most effective today. Manufacturers claim that current models have become much more productive and now consume 80% less energy, but this is a moot point. Manual switching on and off of the boiler, of course, is impractical, and automatic at a given interval does not take into account the temperature regime of day and night. A more or less economical option is to install thermostats and appropriate automation to turn on depending on the temperature in the rooms, but this is difficult in terms of installation and very costly. Reduced power models with equal performance are also nothing more than advertisements. Such a boiler, most likely, will not have enough “strength” to heat a large private house.
infrared panels. This is not just a way to heat rooms, but a fundamentally different technology. The point is not to warm up the air (which has a very low efficiency), but to influence the objects located in the room. Under the light of IR lamps, floors and furniture heat up and begin to emit heat themselves. The fundamental difference is that the traditional "radiator" method of space heating actually heats the ceiling (warm air from the battery rises), and the floors remain cold. With infrared heating, the opposite is true. The light is directed downwards, which means that the warmest place is the floor. Complement the system with thermostats - and economical heating of a country house, private house or garage is ready. And the opinion about the dangers of infrared radiation on a person is nothing more than a myth. The main thing is not to be under the lamp for a long time, and nothing dangerous will happen.
The use of convectors. According to manufacturers, this is the most efficient way of space heating, which combines high performance and economical energy consumption. Both of these statements are the subject of a long dispute, since the technology is based on the same "radiator" principle, and many individual characteristics should be taken into account in heating a house. The main difference lies in the significant ease of installation and operation and lower price.

An important advantage of convectors is fire safety, which is very important when heating a country or private house made of wood. Convectors allow you to install them sequentially from room to room, they are compact and pleasant to look at, and are also protected from power surges.

Inappropriate Options

There are several types of electrical equipment designed for space heating, but not recommended for use as the main source of heat:

  • Thermal fans. These devices have the simplest device and are a large hair dryer, consisting of an incandescent spiral and a fan that drives a stream of air through it. Their use will definitely not be cheap - the air cools extremely quickly, and it will not work to maintain a comfortable temperature for a long time. Do not forget also about the loads on the electrical network and the harm - too dry air is harmful to domestic plants and people.
  • Oil radiators are probably the most common device used by residents of apartment buildings when there is not enough central heating power. Surprisingly, this is still the least efficient way of heating. And even if it is possible to heat the room to a comfortable temperature, it will come out not at all cheap.

Why is this equipment so common if it is inefficient. The fact is that all these are auxiliary devices designed to help out in emergency situations or when the main heating does not cope with its tasks. For a garage, for example, constant heating is not always needed.For the period of repair work, it can be heated with a heat gun (fan heater) powered by electricity or gas. But in a house where it is necessary to constantly keep the temperature at a certain level, infrared panels are much more effective.

Convectors and warm plinth

The convector is also not the cheapest model, since everything depends on electricity, and energy prices are quite high.

Recently, the warm baseboard system has proven itself well, which replaced stationary radiators and works on the principle of heating a liquid coolant, which creates a thermal screen around the perimeter of all rooms. This is practically the most economical home heating, which also has a beneficial effect on health, prevents the appearance of dampness and condensate, and also creates heating savings.

Thanks for the info. Helpful, informative. I will definitely refuse oil.

Good afternoon Oleg. Rarely do you get such constructive feedback. It is immediately clear that you actually studied this issue for a long time and painfully. After reading everything to the end, I want to share my experience with you. Just like you came to exactly the same heating scheme. BUT. Having sat down and considered the benefit of the nightly tariff for electricity, and the fact that we are mainly at work during the day and turn off the heating, I decided that I would order a 3m3 heat accumulator. Yes, it will take some place, but the coolant, if not water, will not be cheap. But after considering the effect of such an undertaking, I came to the conclusion that this is the very thing. I will not describe the principle of operation, you will understand everything yourself.

Presentation on the topic Test. 9 cells Topic Fuel industry. Question 1 The ratio of the use of various types of fuel in the country's economy is called .. 1. Fuel and energy. transcript

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Test. 9 cells Topic: Fuel industry

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Question 1 The ratio of the use of various types of fuel in the country's economy is called. 1.First 2.Second 3.Third 4.Fourth 5.Sixth

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Question 2. How is coal mined in the Pechora basin? 1. Open pit (in a quarry) 2. Shaft method What is Russia's place in terms of gas production in the world? 1.First 2.Second 3.Third 4.Fourth 5.Sixth

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Question 3 What is Russia's place in coal mining in the world? 1.First 2.Second 3.Third 4.Fourth 5.Sixth Choose from the following promising oil fields for development: 1.West Siberian 2.North Caucasian 3.Barents Sea shelf 4.Volga-Uralskoye 5.Caspian Sea shelf 6 .O. Sakhalin

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Question 4 What is Russia's place in terms of oil production in the world? 1.First 2.Second 3.Third 4.Fourth 5.Sixth

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Question 5 What is Russia's place in terms of gas production in the world? 1.First 2.Second 3.Third 4.Fourth 5.Sixth How is coal mined in the Pechora basin? 1. Open pit (quarry) 2. Shaft

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Question 6 Choose from the following lignite basins 1.Kansko-Achinsky 2.Pechorsky 3.Lensky 4.Podmoskovny 5.Zyryansky What is Russia's place in coal mining in the world? 1.First 2.Second 3.Third 4.Fourth 5.Sixth

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Question 7 Select from the following promising oil fields for development: 1. West Siberian 2. North Caucasian 3. Shelf of the Barents Sea 4. Volga-Ural 5. Shelf of the Caspian Sea 6.O. Sakhalin Choose from the following city - the center of oil production and refining: 1. Nizhny Novgorod 2. Yamburg 3. Surgut

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Question 8 Choose from the following new types of fuel and energy raw materials 1. Oil 2. Gas 3. Uranium 4. Tidal energy 5. Solar energy 6. Wind energy Which fuel is the cheapest to produce at cost? 1.Oil 2.Coal 3.Gas 4.Uranium

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Question 9 Select from the following the main gas fields 1. Orenburg-Astrakhan 2. Pechora 3. Tyumen North 4. Sakhalin In which basin is open-pit coal mining predominant? 1.Donetsk 2.Kansko-Achinsky 3.Pechorsky

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Question 10 Which fuel is the cheapest to extract at cost? 1.Oil 2.Coal 3.Gas 4.Uranium Choose from the following main gas fields 1.Orenburg-Astrakhanskoye 2.Pechora 3.Tyumen North 4.Sakhalinskoye

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Question 11 Which basin is dominated by open pit coal mining? 1.Donetsk 2.Kansk-Achinsk 3.Pechorsk Choose from the following new types of fuel and energy raw materials 1.Oil 2.Gas 3.Uranium 4.Tidal energy 5.Solar energy 6.Wind energy

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Question 12 Choose from the following city - the center of oil production and refining: 1. Nizhny Novgorod 2. Yamburg 3. Surgut

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Thank you for your work!

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

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Answers: Option, , 5, , 4, , Option, 5, , , 4, , 4

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

Why electricity

Electric heating differs from classic water-furnace and gas systems in greater efficiency and practicality. We will leave the first aspect for discussion a little lower, and describe the operational advantages here:

Electric heating is not only silent, but also environmentally friendly. It is transported safer than gas and does not emit harmful substances at all, both into the atmosphere and into the premises. In the absence of waste, the need for exhaust chimneys and traction structures also disappears. Heating on coal or wood is not at all comparable to electrical systems.
Heating with electricity does not require large one-time costs. You can make a comparison using the example of gas: in order to connect a house, you must purchase equipment for each room, install communications, a boiler, and crash into a common highway. Moreover, it is necessary to do all this together, since it is impossible to postpone bringing some part of the house to the system. And the electric method allows you to organize sequential installation: first, the most important parts of the house are connected, and then, as funds accumulate, peripheral ones.
Due to the possibility of using a multi-tariff meter in a private house or apartment, as well as the constant development of technologies in this area, heating with electricity is already the most economical among analogues

Do not focus on the high price of equipment - it quickly pays off due to low energy consumption.
Almost every method of organizing electric heating allows you to do the installation yourself, without many additional tools.

The cost of heating on different types of fuel. Natural gas and alternatives. Gasification of large facilities

Of course, the use of electrical systems for heating cannot be called ideal. Work on high-quality heating of each house requires taking into account many features. In some regions, the cost of electricity can be so high that gas cannot be abandoned. In old apartment buildings, it is difficult to switch to electric heating for two reasons: it is very difficult to disconnect from the central highway, and the power grid will have to be built again, taking into account powerful equipment.

Despite this, the overall picture tips the scales in favor of electricity. For rooms in which there is no gas or there is no possibility of supplying it, it is a real salvation.

The choice of fuel for heating which is cheaper

How to determine the type of fuel for a heating boiler? Let's just count.

Numerous advertising statements by heating equipment sellers and multi-page disputes on the Internet about the unprecedented efficiency of using certain heating boilers, on a particular type of fuel, led to the desire to pick up a pencil, open directories, call fuel sellers and, finally, finally figure it out How much does heating cost on different types of fuel?

The calculation was based on the calorific value - the specific heat of combustion of a kilogram of fuel. The calorific value of kilograms was converted into convenient, generally accepted trade units for different types of fuel, liters, cubic meters and the same kilograms.

Solid fuel boilers have the lowest efficiency, gas boilers have the highest efficiency, diesel fuel boilers are close to gas ones.

Therefore, the average parameters of different types of heating boilers were taken and the price of a kilowatt of heat received was calculated, taking into account the efficiency. I suggest you also look at the table in which the results of the calculations were summarized.

They turned out to be quite expected for me, but obviously contradicting popular stereotypes and statements of cunning marketers:

Type of fuel Price in rubles Calorific value The price of a kilowatt of heat Boiler efficiency for a given fuel The price of kW of heat, taking into account the efficiency
Firewood dry, kg 5 rub. 3.6 kW per kilogram RUB 1.39 70% 1 ruble 98 kopecks
Quality coal, kg 3 rub. 7.5 kW per kilogram 0.4 rub.  70% 57 kopecks
Natural gas, m3 4.2 rub. 9.7 kW per cubic meter 0.43 rub. 92% 47 kopecks
Liquefied gas, liter 18 rub. 6.4 kW per liter 2.8 rub. 92% 3 rubles
Diesel fuel, liter 27 rub. 10.3 kW per liter 2.6 rub.  88% 2 rubles 95 kopecks
Electricity, kW 2.18 RUB 1 kW 2.18 RUB  99% 2 rubles 20 kopecks
Pellets, kg 6.5 rubles 5 kW per kilogram 1.3 rub. 70% 1 ruble 86 kopecks

So, our hit parade of the cost of a kilowatt:

The most expensive type of fuel was liquefied gas - 3 rubles per kilowatt.

Second place, with a very small gap from the leader, is occupied by diesel fuel - 2.95 rubles per kilowatt.

Electricity closes the top three - 2.2 rubles.

The fourth place is taken by dry birch firewood - 1.98 rubles.

Wood pellets (pellets) breathe into the back of firewood - 1.86 rubles.

High-quality sized coal unexpectedly outperforms natural gas with a price of 57 kopecks.

And closes the list, taking the honorable place of the economy leader, our asset is natural gas, with a price of 47 kopecks! Ta-daa!

Now that the cost of the energy carrier for heating is known, we will supplement it with the estimated cost of boiler equipment and, for example, take the most popular power of 24 kilowatts:

For liquefied gas, a boiler and a gas tank: 350-550 thousand rubles.

For diesel fuel, boiler and fuel tank: 90-150 thousand rubles.

Electric boiler: 20-35 thousand rubles.

Solid fuel boiler: 30-50 thousand rubles.

Pellet boiler: 200 thousand rubles.

Natural gas boiler: 25-60 thousand rubles.

Conclusions:

Installing a liquefied gas boiler with a gas tank is an absolutely senseless economically, obviously unprofitable undertaking, in fact, a marketing deception of the consumer.

In addition to the cost and a payback period of several centuries, a colossal earthwork is also required, fulfillment of requirements at the installation site, removal of several trucks of soil, importation of several trucks of sand for backfilling, ensuring normal evaporation of liquefied gas in winter at temperatures below -20, periodic pumping of gas condensate from a gas tank and so on and so forth...

If there is no natural gas, and you are reluctant to mess with solid fuels, then it would be quite appropriate to install a diesel boiler, or an electric one, if the allocated power allows.

And it would definitely be appropriate to install an electric boiler in a small house with good thermal insulation.

You may also be interested in:

Wall mounted gas combi boilers

Examples of installation of heating systems

Amid hopes that the US and China will be able to resolve trade differences, prices of commodities from oil to sugar are trending higher

Photo: AFP

Positive investor sentiment does not apply to the group of goods that used to be in great demand. We are talking about metals that are used in the manufacture of batteries.
After more than doubling from 2016 to early 2018, the prices of lithium and cobalt, two key metals used in smartphone and electric vehicle batteries, have been declining for a full month and are down more than 50% from last year's peaks.

Despite analysts' expectations that demand for lithium and cobalt will outstrip supply, China's expansion and declining sales of electric vehicles have weighed on this small and volatile sector of the economy.

This turn of events was reflected in the stock prices of both cobalt producers Glencore PLC and China Molybdenum Co. and lithium suppliers Sociedad Química y Minera De Chile S.A. (SQM) and Albemarle Corp. To stabilize prices, some companies are now cutting production. However, even on the back of hopes that an improvement in global conditions will boost demand for raw materials, analysts now rather believe that supply will exceed demand in the battery materials market over the next few years.

This decline indicates the high risks of investing in those areas of the market that are associated with emerging technologies and are highly influenced by politics.

The Benchmark Mineral Intelligence Lithium Price Index has been falling for 19 consecutive months, down 29% year-on-year. Even with some recovery, cobalt prices fell 36% in 2019, according to Metal Bulletin. Nickel, another battery-required metal, entered a bearish trend last Wednesday, down 20% from its peak in early September.

It is noteworthy that the decline in this segment was accompanied by an increase in investor interest in other risky markets that can provide greater profits. After progress was made in trade talks between the world's two largest economies in mid-October, the prices of a number of commodities and shares of companies based in emerging markets began to rise.

But this trend has not affected lithium and cobalt, precisely because many analysts expect oversupply. Citigroup forecasts that lithium and cobalt supplies will meet or even exceed demand every year until 2023.

The slowdown in electric vehicle sales in China, the world's largest market, which accounted for 60% of global sales last year, has also had an effect on lowering consumption growth expectations. In recent months, the Chinese government has been urging city governments, which introduced restrictions on the sale of ICE vehicles earlier this year, to ease the pressure to encourage auto sales. Also, the Chinese authorities have reduced the amount of subsidies for electric vehicles and it is expected that they will completely abandon them next year.

The downturn in demand in China has effectively wiped out the optimism that has come amid promises to boost electric vehicle production from automakers such as General Motors Co. and Volkswagen AG. And while many analysts still predict battery metal consumption to rise in the long term, some argue that a bearish trend will drive the market over the next few years, forcing companies to adjust their production plans.

In August, commodity giant Glencore said it would halt all work at a giant copper-cobalt mine in the Democratic Republic of the Congo by the end of the year. This decision caused a short-term increase in prices, but recently they began to decline again. Analysts say it may be more difficult to stabilize the lithium market, given that there are significant reserves of this metal in South America and Australia.

Last year, SQM and Albemarle shares fell 44% and 32%, respectively. Smaller manufacturers also suffered.

Earlier this year, the Charlotte, North Carolina-based company said it would delay work to increase its 125,000 metric tons of lithium processing capacity.

Translation from English was made by the editors of Kursiv.kz

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