Market Data
November 3, 2020
CRU: Vaccine Optimism Brings Recovery Forward, But Commodity Prices Unlikely to Rally
Written by James Campbell
By CRU Principal Analyst James Campbell, from CRU’s Global Steel Trade Service
The recent acceleration in news of a pre-approved vaccine has led us to bring forward the economic recovery to the first half of 2021. Confidence has returned and spending is resuming. An earlier-than-expected vaccine provides upside risks to our automotive and construction outlook. This could directly benefit metals demand, particularly those metals which are used as inputs into consumer goods. The implications for prices are less clear cut, given that commodity prices have detached from costs of production.
