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
Why is china facing obstacles? Strong growth in China aluminium smelting capacity and primary output over the last year have weighed on aluminium market sentiment and kept the global market in surplus. However, fresh determination in China to clamp-down on energy-intensive and high-carbon industries threaten approvals for new projects and expectations for continued supply growth […]
March 5, 2021
Will copper continue to rise? Copper’s relentless rally from March 2020 lows has seen prices rise by almost 50% from pre-pandemic levels to almost $9,500. The rally accelerated in February amid bullish forecasts from banks including Goldman Sachs, who expect prices to hit record highs of $10,500 within the next 12-months. Deficit expectations, low visible […]
March 3, 2021
Will tin bounce back or continue to drop? The LME 3-Month tin price gained up to 35% in early 2021 amid unprecedented global physical supply tightness. Nearby spreads hit extreme backwardations amid low global inventories. However, prices eased sharply in recent days amid aggressive selling; Investors fear an easing of metal shortages in the coming […]
March 2, 2021