Cobalt prices have stabilised over the second quarter, after falling in the first quarter of the year; to average US$32,895/t, with the June end price of US$30,571/t.

In September, the market was rattled by rising concerns that an increase in Covid-19 cases in major markets could spur fresh lockdowns and further adversely impact demand.

In November the Asian composite LNG spot price averaged US$5.64/Million British thermal units (MBtu), a strong 14% increase on October’s average US$4.94/MBtu, reflecting firm demand in the region, as well as supply concerns in the US due to Hurricane Eta and stronger European gas prices.

Continued oversupply pressured the Australian metallurgical coal market and price amid ongoing Chinese import restrictions. In November, the premium hard coking coal (HCC) spot price plunged to US$97/t the lowest since July 2016.

AME's US 5-3-2 crack spread vs Brent averaged US$6.59/bbl in November, decreasing significantly by 15.4% from the August average US$7.79/bbl. The decrease is attributed to consistently low distillate consumption due to decreased vehicle and long-haul truck transportation.

In November, the thermal coal market strengthened on several positive announcements about Covid-19 vaccine studies prompting optimism for a global economic recovery. Domestic coal prices in China continued to increase ahead of winter, in response China released more import quotas to meet insufficient domestic supply and cope with peak winter demand and higher domestic coal prices.

Iron ore prices edged even higher during November, on the back off continued demand in China despite increased exports from Brazilian mining giant, Vale. The 62% Fe Fines prices had a weekly consecutive climb from US$118.56/dmt at onset and US$131.97/dmt at close.

Month average hot rolled coil (HRC) prices in the US jumped in November, continuing a run from the prior month, up 12.57% to US$725/t. The market appears to have gained new confidence since the US election outcome became known, the use of quantitative easing, and general optimism with several pharmaceutical companies showing effective trials of their vaccine.

With demand remaining strong from China in September and LME inventories hitting multi-year lows, prices continued to ascend in September with Ex-Asian prices averaging US$6,689/t, from US$6,479/t in August.

A surge in economic activity as country’s look to kick start their economies from the Covid pandemic has seen nickel prices on a run from the pandemic lows at the end of March to re-reach its price point from a year ago.

China continued its steady recovery to pre-pandemic levels as factory activity accelerated in November, lifting demand for zinc. Meanwhile, with much of Europe in lockdown, manufacturing contracted sharply. The US also had a slowdown in the growth of manufacturing. It seems that an economic recovery in these regions are dependent on the successful roll out of a vaccine.

Revival of economic activity from the depths of the Covid-19 pandemic—mostly in China—has seen the aluminium price rise steadily from early April. The European aluminium price climbed over November. The average price for November was 6.7% above October’s figure representing the rapidity of the price rise over the month.

The recent news on the successful trials of three Covid-19 vaccines, unleashed a considerable amount of pent up “risk-on” demand and saw a clear shift from gold to equities, resulting in a significant fall in the gold price and the Dow breaking 30,000 and setting a record high.