Minerals & Energy Outlook: September 2020
At a high level, commodity prices broadly strengthened in August (with coal and gold the notable exceptions).
- At a high level, commodity prices broadly strengthened in August (with coal and gold the notable exceptions). A range of commodities – notably iron ore and base metals – saw improved demand prospects as infrastructure and housing construction in China appears to be ramping up.
- Global economic conditions have improved across the third quarter, as a broad range of countries have reduced COVID-19 countermeasures, however the virus presents considerable risk – highlighted by consumer and government responses to second wave outbreaks.
- In annual average terms, US dollar denominated commodity prices (measured by our non-rural commodity price index) are forecast to fall by 6.0%, with this decline largely driven by falls in prices for Liquefied Natural Gas (LNG) and hard coking coal. In 2021, the index is forecast to increase by 3.8%.
Find out more in Minerals & Energy Outlook – Sep 2020.