Blog - Basic Metals

Exports from the U.S.In Apr 2022, the amount of copper exported from the United States rose...

The conflict between Russia and Ukraine has had a significant impact on the ferroalloy industry. The main producing regions of ferroalloys are located in Eastern Europe, which has been affected by the conflict.

Iron and steel wire exports in the European Union peaked at $5.9B in 2021. Italy, Germany and the Czech Republic remain the leading suppliers. 

U.S. aluminium foil imports from Thailand rose fourfold, reaching $71M in 2021. 

The average gold price rose by 1.7% to $1800 per troy ounce in 2021. World Bank predicts that gold prices will decrease by 1.1% this year, but recent political tensions around the world could result in the forecast could be revised.  

Russia, the second-largest supplier in the global aluminium market, could lose a significant part of export earnings due to sanctions imposed by the West amid the conflict in Ukraine.    

In 2020, global copper matte imports surged to 374K tonnes, picking up by 27% against 2019 figures. In value terms, supplies soared from $0.8B to $1.2B.

Over the last decade,  exports of copper powders and flakes from Malaysia rose tenfold, from $71M in 2010 to $782M in 2020. In physical terms, supplies increased from 14K tonnes to 238K tonnes. 

Nickel prices reached a decade high in January 2022, spiking by 12% from a month earlier. Rising global production is set to decrease the average annual nickel price by approx. 4% y/y in 2022. 

The average annual copper price is forecast to drop by 6% y-o-y to $8,800 per tonne this year. Boosting supply in the global copper ore market is to push prices down, while the global demand languishes with slowed construction activity in China.

Throughout January-September 2021, global ferroalloy trade totalled $11.8B, increasing by +36% compared to the same period last year. This spike was caused by growing prices, as imports in physical terms remained nearly unchanged against the previous year’s figures. China tops the ferroalloy importer ranking with 29% of the total value, followed by Japan and the U.S. The average ferroalloy import price in September 2021 was estimated at $2.5 per kg, a 56%-increase compared to those of September 2020.

Throughout this year, global aluminum prices continuously grew and in October 2021 gained 62% compared to October 2020. China's output has decreased due to restrictions on energy usage and halted production at a 300K-ton capacity factory in Yunnan province. As a consequence, the average yearly price in 2022 is projected to rise by 6% y-o-y. Despite rising prices, the U.S., the world´s largest aluminum importer, expanded its purchases by 4.5% against 2020.