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
July 8, 2024
Minerals & Energy Outlook: July 2024
NAB’s Non-rural Commodity Price Index declined in Q2
Overview
- Volatility in commodity markets continued in June, with a sharp correction in base metals, following the speculative surge recorded in May.
- NAB’s Non-rural Commodity Price Index declined in Q2 – down by around 7.0% qoq in US dollar terms – as weaker trends for steel making commodities more than offset stronger gold, base metal and energy prices.
- We continue to see a broadly unfavourable economic environment for commodity markets. China’s domestic demand remains subdued, advanced economy activity is constrained by restrictive monetary policy and trade tensions are rising.
- We have made modest upward revisions to the forecasts for LNG and zinc this month – resulting in a slightly smaller annual decline in our index. NAB’s Non-rural Commodity Price Index is forecast to fall by 10.8% in 2024 in US dollar terms, and a further 14.0% in 2025 – led by coal and iron ore.
Find out more in the Minerals & Energy Outlook (July 2024)
