NAB’s Wellbeing Index rebounded solidly in the June quarter, after falling to its lowest point in the history of the survey. Pressures remain. But the effort required has eased.
Report
April 15, 2020
Minerals & Energy Outlook: April 2020
Overall, the global economic outlook has deteriorated since last month, with the downturn expected to far exceed the Global Financial Crisis.
- Commodity prices have generally fallen in recent weeks, as global containment measures intended to limit the spread of Covid-19 have weakened demand prospects, while the resumption of some activity in China has increased supply of some commodities (most notably coal).
- Overall, the global economic outlook has deteriorated since last month, with the downturn expected to far exceed the Global Financial Crisis. This presents a very negative picture for commodity demand in the near term. However, the scale and duration of the downturn is also highly uncertain – our expectation is that a global recovery commences in Q3 2020, however there is downside risk to this outlook.
- In annual average terms, US dollar denominated commodity prices are forecast to fall by 16.2% in 2020, driven by a drop in liquefied natural gas (LNG) along with iron ore and metallurgical coal.
- A modest recovery is expected in 2021, with commodity prices forecast to increase by 0.5%.
Find out more in NAB’s Minerals & Energy Outlook – April 2020
