In keeping with the trend throughout much of 2022, December saw high volatility in prices. News of a further relaxation in China’s zero-Covid policy drove three month prices back above the US$8,600/t level. However, the rally petered out on the near-term impact of slowing economic activity in China from escalating infection rates as well as hawkish comments by the US Fed following another interest rates rise. Challenges remain for both supply and demand as we look ahead into 2023. The scene is set for another year of volatile prices. Visible inventories remain at historically low levels and while production is expected to rise, this will be set against an uncertain macroeconomic backdrop.