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
Copper hits all time high The LME copper price has surpassed the all-time high of $10,190 from 2011. Reflation-led investor interest in commodities continues to drive the bull-market uptrend. This is in addition to copper-specific projections that mine supply growth may struggle to meet potential demand from the global energy transition. Slowing physical interest in […]
May 11, 2021
What do these tin shortages mean? News of severe tin production disruption at Malaysia Smelting Corporation (MSC) that could last beyond the end of 2021 has helped reignite the tin price rally and tighten nearby LME spreads. While there is a lack of clarity on the potential impact on output, the news comes as yet […]
May 5, 2021
What has caused the global shipping disruption? Since the onset of the pandemic, an acute shortage of global container freight capacity has seen shipping costs and delays surge to unprecedented levels. Causing this was an unexpected surge in demand for consumer goods, stranded containers from asymmetry in trade flows, and port delays. Disruption has impacted […]
April 28, 2021
Will inflation effect prices? The global reflation trade continues to buoy prices and physical demand for base metals, which have rallied strongly alongside other risk assets over the last year. As key economies continue their stimulus-led rebound in Q2 and inflation picks up, this should continue to drive the metals bull market. However, investors will […]
April 20, 2021
what does this mean for consumers? Pressure from society, industrial consumers and governments to cut CO2 emissions from aluminium production is imposing costs on producers. Whether this cost is absorbed by governments or passed on to industrial consumers through higher premiums or underlying aluminium prices is subject to significant policy uncertainty. Background The global […]
April 14, 2021
Why is there a shortage? In early March nickel prices retreated by ~20% from February highs. The sharp move came after China steel giant and top nickel producer Tsingshan announced plans to produce a precursor to battery-grade nickel from nickel pig iron (NPI). This dampened investor expectations for a future shortage of Class 1 nickel […]
March 16, 2021