Why has the shipping crisis worsened? The continuing global shipping crisis has widened dislocations between regional physical metal markets. Soaring physical premiums in the US and Europe and severe imbalances in global metal inventory distribution reflect the growing difficulty in shipping metal to where it is most needed. Shipping difficulties could worsen after recent port […]
August 23, 2021
Lead market sees increase The LME lead price has risen higher overall since June amid falling LME inventories and physical tightness in the US and Europe. Shipping issues have so far shielded LME prices from significant exports of lead from China amid heavy oversupply there, but the threat of shipments may temper the potential for […]
August 10, 2021
Will climate change effect metal supply? While metal demand opportunities from decarbonisation have captured investor’s attention over the last year, the extreme weather observed globally in recent weeks highlights the growing influence that climate change itself is likely to have on metal markets. A warming climate is associated with more severe and frequent weather conditions, […]
July 27, 2021
what does the stalling economy mean? Stalling growth in China’s economy and the rampant spread of the Covid-19 Delta variant across Southeast Asia threatens the base metals outlook. While at face value China’s RRR cut could boost risk assets through increased bank lending, it signals China’s policymakers are concerned about slowing domestic growth amid tighter […]
July 15, 2021
Can the tin market recover? The ex-China tin market remains in the grip of the severest physical shortages in recent memory. Driving tightness is strong pandemic-era demand for electronics and electrical goods, supply disruption across top tin producing regions, and critically low global inventories. Market tightness is likely to persist in H2 2021, even as […]
July 5, 2021
Surge for demand in Aluminium? Since the onset of the global pandemic, decarbonisation has become a core pillar of government policy for most major economies. Aluminium is likely to see strong demand from low-carbon technologies and constraints on supply due to a crackdown on high-carbon production and electricity use. This shift means the long-term fundamental […]
June 30, 2021
What is Resource Nationalism? Resource nationalism is the inclination of governments to seek greater control or revenue from natural resources in their territory. This is on the rise due to economic, nationalistic, and strategic factors amplified by the global pandemic. Punitive taxes, royalties, or other actions would likely hit mine project investment, but could also […]
June 10, 2021
What does this mean for the market? China policymakers have taken strong verbal action to tackle inflationary risks from surging commodity prices. This has moderated bullish speculative enthusiasm for metals, but could be short-lived; China lacks meaningful options to temper any further global surge in commodity prices without jeopardising other policy priorities. Commodity Price Surge […]
June 2, 2021
Why is lead bouncing back? The LME lead price rebounded strongly from March lows. Macro-led fund interest in commodities and lead’s relative cheapness underpinned gains. The rise is at odds with the metal’s weak fundamental narrative, which will likely continue to weigh on its relative price performance versus the rest of the base metals complex. […]
May 19, 2021