Lima, December 31, 2021Updated on 12/31/2021 08:39 am
Industrial metal prices will end 2021 with their biggest annual rise since 2009, driven by tight supplies and growing demand, with the biggest gains in aluminum and tin.
Prices were trending unevenly on Friday, amid a low trading session due to the end of the year holidays.
The London Metal Exchange (LME) index, made up of copper, aluminum, nickel, zinc, lead and tin, was up 32% this year, following a 20% rise in 2020.
“It has been a year with a strong recovery in demand from the pandemic. Most of the metals markets went into deficit “said ING analyst Wenyu Yao.
“Looking ahead to 2022, we hope it will be a year of normalization. We expect demand growth to moderate “he said, adding that limited supply should keep prices high, at least in the short term.
Benchmark three-month copper on the LME was up 0.2% to $ 9,708 a tonne as of 11:24 GMT and was up 25% in 2021, after climbing 26% in 2020.
Aluminum on the LME rose 0.1% to $ 2,819.50 a ton, up 43% in 2021, its biggest gain since 2009.
China’s manufacturing activity unexpectedly accelerated in December, but analysts see trouble ahead.
The Las Bambas copper mine in Peru said it would resume operations after it reached an agreement with protesters blocking a road to the deposit.