Green transition to help charge cobalt prices

Cobalt prices have soared in 2021 to almost double the 2020 average price of $31,726 per tonne. We expect the growth in EV production and issues around supply to continue to push prices higher in 2022.
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Metals Data Response

Global Aluminium Production (Dec.)

Although global aluminium output fell in y/y terms in December, it still grew strongly over 2021. The lifting of power restrictions in China has helped increase global output despite a reduction in European output resulting from energy shortages. Looking ahead, we expect a slowdown in Chinese construction activity to weigh on aluminium prices in 2022.

20 January 2022

Industrial Metals Update

Slower growth in China to drag on prices in 2022

While high power prices and low stocks will support prices in the near term, we think that prices will pull back in the second half of 2022 as Chinese economic activity slows further and supply improves. Drop-In: Neil Shearing will host an online panel of our senior economists to answer your questions and update on macro and markets this Thursday, 13th January (11:00 ET/16:00 GMT). Register for the latest on everything from Omicron to the Fed to our key calls for 2022. Registration here.

13 January 2022

Metals Data Response

Global Steel Production (Nov.)

Global steel production contracted in y/y terms in November, mainly owing to depressed output in China. Although China’s power rationing came to an end last month, there are no signs of an upturn in steel supply. Given our expectation that construction-related steel demand will remain subdued, a sustained rebound in China’s steel production appears unlikely in the coming months.

22 December 2021

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Metals Data Response

Global Aluminium Production (Oct.)

October’s IAI data suggest the easing of power restrictions in China has enabled greater utilisation rates at smelters, driving the global increase in output this month. We think that aluminium output will remain high over the rest of this year, incentivised by the high price. However, we expect that the slowing of the Chinese construction sector will weigh on demand and prices in 2022.

22 November 2021

Industrial Metals Update

Copper supply set for further improvements

Copper prices have soared since mid-2020 as demand raced ahead of supply. However, a strong supply response is now underway which, in tandem with cooling copper demand, will weigh on prices into 2022.

15 November 2021

Industrial Metals Update

Zinc supply shock as power prices rise

The recent highs in the zinc price have been driven by fears around supply as sky-rocketing energy prices have undermined smelter profitability. We expect power prices to remain high in the coming months which should constrain zinc supply and boost prices. However, as we move into 2022, we expect zinc supply to return as power prices fall and China’s economy continues to slow.

26 October 2021
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