Key Chinese economic indicators, including the NBS manufacturing purchasing managers’ index, dipped into contractionary territory in September, while auto production in China dropped 17.7% year over year, dampened by the chronic shortage of electronic chips. The slowdown in China's manufacturing sector contrasts with the robust activity seen in Europe and the U.S., although surging energy prices and supply chain issues threaten post-pandemic recovery in those regions. China's intensifying decarbonization drive has also led to restrictions on power usage in the industrial sector, including some metals smelters; curtailed production of refined copper and zinc led these metals’ prices to skyrocket in October, while nickel prices have also soared amid supply disruptions, recovering stainless steel sector activity and strong demand from the EV battery market. 2021 was set to be another record year for global plug-in electric vehicle sales, supported by ever-rising model availability, consumer incentives and producer penalties. A prolonged computer chip shortage however, constrained full EV sales potential in 2021, creating a downside risk for the coming year.

With many moving pieces impacting the metals industry, LME and S&P Global Market Intelligence look ahead to the key strategic trends and opportunities expected to drive the copper, zinc and nickel markets through 2022.

Join us as we discuss the latest developments in the base metals markets and provide insights on their future outlooks.