The outlook for the supply/demand balance in 2020 is looking far better than it has previously, which has given producers a stronger hand in negations with consumers.

Saudi Arabia's decision to boost output and offer deep discounts for its crude after Russia reject the kingdom's request to make deeper cuts has triggered a price war which threatens to saturate the oil market with supplies just as the coronavirus outbreak saps demand.

The natural gas market has not been heavily impacted by Covid-19. Prices have generally remained very low but stable below US$2.00/MBtu since mid-January—well before the pandemic struck.

Seaborne metallurgical coal spot prices have dropped dramatically from April due to government measures, such as stay-at-home orders and travel curbs, to control the spread of Covid-19.

The coronavirus outbreak triggered the International Energy Agency (IEA) to revise down its outlook for global refinery runs. Chinese crude throughputs for Q1 2020 have been cut by 1.1Mbpd and are now expected to contract by 0.5Mbpd year-on-year. As a result, global refinery runs are forecast to expand by just 0.7Mbpd in 2020.

The thermal coal market remained quiet in May amid global lockdown measures to curb the spread of the coronavirus, resulting in a drop in all benchmark prices.

China’s customs authorities issued a notice over the new supervising rules, which took effect from the 1st of June, which obliges customs officials to inspect iron ore only at the request of the trader or importer.

Chinese steel producer profit margins reportedly fell over February as the coronavirus outbreak stalled demand, created significant logistic issues and resulted in significant stock build up at mills.

The coronavirus has hit automotive factories in China owned by companies such as Toyota, Honda and General Motors, forcing extended shutdown periods beyond the Lunar New Year festivities and weakening demand for base metals. Major Chinese smelters Jiangxi Copper and Tongling Nonferrous announced production cuts.

In February, nickel prices plunged to an average price of US$12,735 /t (US$5.78/lb) from US$13,549/t (US$6.15/lb) in January. Prices did gain temporarily as the phase one trade deal between the United States and China was realised in February. However, the run was short lived as the coronavirus rapidly spread to countries outside of China causing shipping and travel restrictions which have resulted in supply chain disruption and lower prices.

Zinc prices initially rose in February as the phase one trade deal sparked hope for a revival of industrial activity, before plummeting in line with other base metals as the outbreak of the coronavirus spread to more than 100 countries.

Concerns over the economic impact of the coronavirus outbreak continues to pressure aluminium prices. The European aluminium price averaged US$1,693/t (US76.83¢/lb) for February, a 4.5% decline from the January month average. Over the month the price declined 0.9% to US$1,672/t (75.8¢/lb).

In an apparent wave of collective cognitive dissonance, a new equity bull market in equities has removed some of the sheen from gold’s price performance.