Over Q1 2020, COVID-19 has developed from an emerging threat to a transformational reality with potentially long-lasting effects on economic growth. All optimism for commodity markets at the start of the year was quickly extinguished as the coronavirus emerged in Wuhan, China. Prices have been dragged down further by dire market fundamentals which were a result of government-imposed lockdowns in the major global economies. Both supply and demand have been lowered across the board, but demand has been harder hit and will be slower to make a recovery. Most commodities have further to fall from here. There has been a profound human cost to the pandemic and the economic fallout of governments’ responses is just starting to be counted. Read more
Shares in commodity trading firms take another tumble, driving global stocks to their lowest in more than two years, as pressure built on raw materials prices and emerging markets.
Shares in commodity giant Glencore plunged 25% after analysts fear lower metal prices.
As Greece teeters towards a potential EU exit, commodity prices are also feeling the heat, driven in part by slower growth in China.
(Reuters Business Report) – Few people have much sympathy for the mining companies.
Environmentally damaging, polluting, and hugely profitable, finding friends is no easy task.
BUT they also employ millions of people.
Most of them in developing countries, and often poorly paid.