Base metals prove their mettle in wild 2021 as gold and iron ore are dented – The National

  • Date: 31-Dec-2021
  • Source: The National
  • Sector:Oil & Gas
  • Country:Middle East
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Base metals prove their mettle in wild 2021 as gold and iron ore are dented – The National

Metals are capping off a tumultuous 2021 dominated by supply squeezes, China’s property-led economic slowdown and a global energy crisis that hints at more disruptions to come.

This year copper hit a record high as the pandemic scrambled supply and demand, but tin was the star performer as base metals marched higher. Gold bulls were ultimately left disappointed even as inflation raged. And iron ore suffered a boom-to-bust collapse from more than above $200 a tonne to below $100 on China’s waning appetite.

The contours of 2022’s other major drivers are already visible. Dangerously low inventories was a theme across metals that will carry into next year – especially if the global economy continues to improve. Beijing’s stimulus measures might put a floor under China’s steel woes, while US Federal Reserve tightening and stubborn inflation is a headwind elsewhere. Watch energy and the climate agenda, which should dominate aluminium in particular.