ENERGIES - Coal continues to outperform the rest of the energy complex, although with the northern hemisphere winter nearing an end, the threat of an interruption to Russian energy supplies fades. Crude prices are also shifting higher as $100 Brent looks to be on the cards once more. Global inflation and supply chain threats continue to ramp up, especially in the US as west coast port operators prepare for tough wage negotiations in July. LNG and natgas prices have softened from Europe through to Japan, although markets remain on edge.
METALS - Most LME metal warehouses once again saw lower stocks and fewer cancelled warrants. Copper prices continue to track sideways, biding their time before our expected rally later in the year. Gold is likewise tracking sideways as central banks continue to lease forward with a bond market offering less stability these days. Aluminium appears to be heading for a shortage amidst worries about energy supply for the energy intensive sector.
INDUSTRIALS - Iron ore continues firm, along with both steel and scrap prices. However, China intends increasing domestic ore production and its use of scrap to counter reliance on Australian iron ore. Both Russia and China are still highly upset about the recent AUKUS security pact, as evidenced from a recent joint communique from them. Freight prices are slightly stronger on the week with fewer ships needing to find homes at the moment.