LME Week recap: what a difference a year makes
Demand is positive, and question marks around supply are driving prices higher
At this year's LME Week, the tone was generally positive across all commodities and the view is that the good times are "a coming".
Highs and lows from LME Week
We are seeing some prices move due to the electric vehicle excitement, but we believe those moves won't be warranted until later. We would also caution on rising costs after years of cost cutting. Higher prices won't lead to a 1:1 increase in producer margins since the cost structure is not constant. This is something we are watching closely as we believe cost cutting has bottomed.
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At the recent London Metal Exchange forum, we addressed the uncertainties facing the global metals and mining industry. Complete the form to receive a copy of our related report that covers our latest thinking on the following topics:
- Nickel, electric vehicles and the challenge of future supply
- Copper: demand shifting back into focus
- Aluminium: surplus, what surplus?
- Zinc: the only way is up!
- Lead: death by battery, or a spark of new life?
- Iron ore: it might be slowing but it’s still growing