ENERGIES - Coal markets continue to stabilise, with the back end of the curve having come up significantly in recent weeks. A great opportunity for coal producers to start locking in some forward pricing. Crude oil prices are looking tired, with Brent struggling to hold the $120 mark. With no shortage of regular crudes and EU supplies still flowing, it appears likely that crude will oscillate around $100 for now. Gas prices have more room to run, with EU gas having pulled back significantly whilst Asian LNG cargoes remain expensive. The threat of paying for Russian oil and gas in Rubles seems baseless, although the Ruble regained some ground against the Dollar in the past week.

METALS - Precious metals have tracked sideways and appear set to fall further without any further escalation in Ukraine. The threat of inflation doesn't seem to be factoring into investor's minds just yet, with Central Banks still using their reserves to lend against. Base metals look set to also track sideways for now, biding time for a run higher in the coming weeks. Nickel resumed trading on the LME and found a bid around the $33k level. Cobalt and lithium hydroxide continue to set new record prices, meaning that battery storage can only get more and more expensive. The basic law of supply and demand seem to be working well.

INDUSTRIALS - Iron ore had been trending weaker but saw a strong finish to the week as Chinese mills struggle with supply shortages relating to covid-related disruptions. Rio Tinto announced it will go ahead with its Simandou deposit, agreeing to build some 670km of rail to export its material from Guinea. Simandou is expected to be the world's largest, highest-grade iron ore deposit, and will revive exploration interest for the ore in the continent. With access to cheap solar power to drive electric arc furnaces, it is a wonder that more miners are not integrating along the value
chain to produce ferro-alloys and steel etc. For now, scrap steel and hot rolled coil prices remain robust.