ENERGIES - Coal continues strong although a market correction is imminent once European physical supplies are assured. The current strong physical premiums being enjoyed are likely to align back to paper market levels, especially considering that natgas, power and carbon markets were softer on the week. Crude oil is likely to remain volatile as Brent toys with the $100 mark once more.
However, going into the shoulder of the northern hemisphere winter, we may be seeing pressure starting to ease, although market nerves remain shattered.
METALS - Copper prices have surged while the rest of the base metal complex also performed. LME stock levels, with the exception of cobalt, are all lower on the week as warehouse drawdowns continue. Precious metals are slightly over-extended to the topside now and should see some softening as geo-political tensions come off the boil. Silver is however seeing sustained industrial and investor interest.
INDUSTRIALS - Iron-ore also remains robust with confidence building on the back end of the curve for sustained price levels. The sector is seeing strong demand from the industrial sector, notably wind turbine manufacturers. Chinese hot rolled coil is also firmer across the curve, whilst the steel scrap sector is looking at even firmer demand some two years out.
Freight prices are firmer although shippers remains nervous as any war with Russia would immediately seize demand for cargoes.