Predictions of the metals market in 2021
2020, despite the pandemic, was far from the worst year ever for the metals market. Despite the stunning fall in the first half of 2020, the situation began to improve significantly in the second half of the year. First of all, it was due to the unexpectedly rapid recovery of the Chinese economy, which accounts for the consumption of about 60% of all base metals.
The news from the USA also contributes to cautious optimism. Joe Biden’s victory may accelerate the launch of the stimulus plan, which should amount to nearly 2 trillion dollars. This will boost the prices of metals, at least in the short term.
As for the European market, the situation is not so positive, especially taking into account the return of many countries to the lock-up regime over the New Year period. However, while the construction sector is still weak, manufacturing industries, especially the automotive industry, are showing the first signs of recovery.
Overall, analysts expect a gradual increase in the metals market in 2021 on the back of the global economic recovery from the pandemic crisis, although they allow for corrections to the current trends. Much credit is due to the start of the vaccination campaign, which should allow the situation with COVID-19 to be controlled.