PRESS ROOM
October – A month of two halves for industrial metals
Friday 05th November '21
October was a month of two halves for industrial metals. The sector made significant gains during the first half of the month before losing some ground in the second half. Zinc was particularly volatile as prices rose sharply when European producer Nyrstar announced on 13 October that it would cut zinc production by 50% at three European smelters due to the surge in energy prices. This exacerbated concerns of an already tight zinc market given production cuts in China.
Nonetheless, industrial metals pulled back in the second half of the month as China moved to ease the crunch in energy prices. Bloomberg reported that China is expected to cap thermal coal prices until May next year. Markets are expecting some of the severe near-term tightness in industrial metals to ease as a result. Still, production is expected to remain curtailed while demand continues to rise. This should continue to fuel the sector.