October 14, 2020
Minerals & Energy Outlook: October 2020
Trends in global commodity prices remain mixed.
- Trends in global commodity prices remain mixed –with metals generally easing down from recent, early September, peaks –potentially related to Chinese buyers leaving the market due to the early October Golden Week holidays –while coal prices have risen from recent cyclical lows. Oil prices remain volatile, with global demand likely to remain weak for the foreseeable future.
- Although the global economy appears to be gradually recovering from lows in Q2, COVID-19 remains a considerable risk to the near term outlook –with fresh outbreaks in a number of regions raising the potential for additional restrictions and consumer caution to negatively impact growth.
- In annual average terms, US dollar denominated commodity prices (as measured by our non-rural commodity price index) are forecast to fall by 4.2% in 2020 –with this decline largely driven by declines in Liquefied Natural Gas (LNG) and hard coking coal prices. In 2021, the index is forecast to increase by 6.7%.
Find out more in the Minerals & Energy Outlook – October 2020.