Covid-19 briefing

80%

Four-fifths of business leaders reported Covid-19 to still have at least a “moderate” impact on their business, with 11% noting it has a “high” impact.

36%

The percentage of business leaders said to be “very concerned” about the virus has fallen from 66% in March 2020 to 36% at the start of this year.

BASE METALS

After passing $10,000/t in October, the copper price declined marginally over the remainder of the year, but still averaged over 50% higher in 2021 compared with 2020. A drop in inventories has helped copper prices, which have been under pressure due to declining demand in China, with the country’s power supply crisis leading to factories being closed, thereby impacting demand, with surpluses expected.

IRON ORE

The global iron ore price fell steeply in November due to steel production curbs by China as the country looked to reduce pollution and power use. However, while port stocks continued to climb, there followed an improvement in the price in December, peaking at $113.6/t. For 2021, the average iron ore price was 52% higher than in 2020.

PALLADIUM AND PLATINUM

After reaching a six-year high of $1,325/troy oz in February, the price of platinum fell to a low of $925/troy oz in December, before recovering marginally by the end of the year. The average price of platinum was still significantly higher in 2021, compared with the prior year, at $1,098/oz, an increase of 23%.

COAL

Rising demand as the northern hemisphere entered the winter months, coupled with increasing natural gas prices and supply constraints, led to a surge in thermal coal prices in September and October. After peaking at $269.50/t on October 5, an intervention by the Chinese Government, ordering its major miners to cut prices and increase output, led to thermal coal price dropping to $140.90/t in early November, before it recovered to $166/t in December.

PRECIOUS METALS

The gold price has fluctuated around the $1,800/oz mark for the last few months, with an increase in November due to rising inflation followed by a dip, related to the spread of the latest Covid-19 variant in December.