METAL COMMODITIES: High demand by the energy transition
Year 2021 has been a year characterised by a surprising recovery for commodity prices helped by a 2020 that was far stronger than anticipated, says Wood Mackenzie.
The recovery has been China-led and supported by vaccine roll-outs in many developed economies. There are, however, signs of a slowing of activity resulting from: the uneven pace of global vaccine distribution, the emergence of the delta covid-19 variant, signs of economic headwinds in China, pressure on the FED to begin tapering and government enabled stimulus packages running their course. These factors now place at risk the near term outlook for growth and prices.
The next decade continues to present a unique opportunity for mined commodities. Never before has the industry had such foresight of the long-term transformative demand that we see encapsulated by the energy transition. This presents a fascinating dynamic to sector players, who seek to maintain capital discipline in the near term, while positioning themselves to take advantage of the much anticipated “supercycle” in green energy materials.
Wood Mackenzie’s 2021 LME Forum will bring these challenges and opportunities to life, marrying the key short-term drivers impacting mined commodity markets with an in-depth analysis of the challenges and opportunities that the energy transition represents over the longer term.