Wild 2021 for metals: Copper, tin shine as gold falters, iron ore sinks
JOHANNESBURG – Metals are capping off a tumultuous 2021 dominated by supply squeezes, China’s proper- ty-led economic slowdown and a global energy crisis that hints at more disrup- tions to come.
Last year saw copper hit- ting a record as the pandem- ic roiled supply and demand, but tin was the star perform- er as base metals marched higher. Gold bulls were ulti- mately left disappointed even as inflation raged. And iron
ore suffered a boom-to-bust collapse from above $200 a ton to below $100 on China’s waning appetite.
The contours of 2022’s oth- er major drivers are already visible. Dangerously low in- ventories was a theme across metals that will carry into next year – especially if the global economy continues to im- prove. Beijing’s stimulus mea- sures 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 agen- da, which should dominate aluminum in particular.
“Base metals performed outstandingly well this year, which is not surprising as they effectively made up ground
that was lost during 2020,” Gavin Wendt, founding di- rector at Mine Life. “Next year should see a continuation of overall positive demand, but with greater price volatility as the supply side recovers. – BLOOMBERG NEWS.
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