The spiralling cost of energy and emissions allowances in Europe continues to undermine the economics of Europe’s zinc production. Capacity reductions and smelter closures will exacerbate acute zinc supply pressures in Europe, where visible inventory is at critical lows. This should continue to underpin the LME zinc price, spreads and regional physical premiums in Q1 […]
December 22, 2021
Base metal availability and pricing remain sensitive to trends in supply-chain inventory requirements amid global shipping disruption. A bullwhip effect may be playing out in the global goods sector. This could weigh on prices if global freight issues ease during 2022. Growing barriers and risks to international metals trade may drive governments to develop or […]
December 10, 2021
The ferrous complex was weaker across the board in November. Iron Ore spot dipped below 100 down to 87 in the middle of November but recovered back to 100 at the end of the month to average 95. Declines in futures on the back of production cuts, falling steel demand and over supply of iron […]
December 3, 2021
Base metal prices have proved largely resilient to emerging risks to economic growth. This is amid persisting signs of acute physical tightness across the complex. Abnormally backwardated forward curves, sustained pressure on LME inventories, and elevated physical premiums are the clearest indicators. Backwardations Everywhere Notable tightness has developed across nearby LME spreads for all the […]
December 3, 2021
The main themes for October were soaring energy costs, falling iron ore prices, divergence between longs and flats and the US replacing Section 232 tariffs. Iron ore prices which have been on an uptrend since late 2018 due to firm Chinese demand, lost 8% value during the month. Improving steel mill margins since China’s steel […]
November 16, 2021
Why are metal prices plummeting? Base metals prices aggressively retreated in the second half of October after China’s coal price collapsed following government intervention. Coal’s rout suggests easing power rationing and lower energy costs for metal producers. Fresh visibility of the impact of power shortages and related supply-chain disruption on downstream industrial activity and, by […]
November 3, 2021
What do these magnesium shortages mean? China produces the majority of the world’s magnesium but domestic power curbs have significantly disrupted output, triggering fears of a major global shortage. The metal is essential for producing aluminium alloys for the auto industry, among other applications. This threatens fresh automotive sector shutdowns and associated base metals demand. […]
October 29, 2021
Why is copper rebounding? Escalating physical market tightness has jolted the copper price into life after several months of directionless trading. Declining copper exchange inventories and heightened inflation concerns prompted by the global energy crisis have acted as a catalyst for historically extreme LME spread tightness and a resurgence in 3M prices to within a […]
October 20, 2021
monthly report overview Iron ore surged to a high in mid-May, when spot prices reached $235. Prices since fell as China cut steel output in H2 to reduce output below 2020s 1.065 billion mt to reduce both pollution and energy usage. Freight rates hit 13 year high on Monday 1st October as the Baltic Dry […]
October 8, 2021