ReportLinker Blog

With demand surging, metals look set to enter a new supercycle.

Written by ReportLinker | Jul 5, '2021

See how ReportLinker’s AI-driven Market Intelligence Platform provides powerful market insights into  the metal sector trends, market drivers and company strategies.

  • Which metals are likely to see the highest cost increases over time?
  • How will trade wars and other political disruptions affect different producers?
  • What will be the impact on end-pricing and global inflation rates? 

The price for metals skyrockets 

Like many other asset classes, metals were hit hard by the outbreak of COVID-19. As the world’s economies ground to a halt, prices plummeted. Copper fell by 30% between January and May 2020, taking the cost per tonne back to levels not seen since 2016.

But the reversal has been short-lived. Over the past year, prices have skyrocketed. Aluminium has increased by 56% and iron ore by 78%. Meanwhile copper has climbed by 87%, more than making up for the decline in early 2020.

The extent to which the world is entering a new metals supercycle is business-critical for many industries. The automotive, construction and semi-conductor sectors are all facing huge increases in input costs. Price rises have also contributed to the shortage in shipping containers, significantly impacting global trade.

To stay on top of this important issue, companies need access to high quality, timely intelligence.

Analyse long-term trends

Drawing on the world’s best sources, ReportLinker’s ‘Sectors’ tool gives you immediate access to key indicators and market trends over time.

Whether you’re looking for information on production capacity, reserves or global demand, the data is just a click away.

As the world’s factory, China’s appetite for metals is voracious and has been growing by the year. 

Demand from China is one of the primary reasons for the current escalation in prices. With the country emerging from lockdown earlier than most, it saw an opportunity to buy at scale. Last year, it imported copper at the highest rate in a decade.

Track current events

In a market as volatile as metals, it’s imperative to keep up to speed with the latest developments.

In addition to strong demand, supply constraints are driving up prices. South American producers have suffered particularly badly. ReportLinker’s ‘News’ Tool with its NLP-tagged content makes it easy to stay abreast of events. 

With a single click, you can then read relevant articles in full.


Gain future insights

It’s important to know what’s happening today…but it’s even more important to understand what’s likely to happen tomorrow.

ReportLinker’s AI-powered ‘Smart Insights’ tool lets you examine key sector dynamics and how they are forecast to play out.

It’s not just China that’s driving demand. Around the world, competition for natural resources is red-hot.

As they look to build back post COVID, most governments have put major infrastructure projects at the heart of their stimulus packages. These will need huge quantities of metals. So will the shift to low-carbon economies: the manufacture of electric cars, for instance, requires four times as much metal as traditional models.

Many producers believe the balance of threats and opportunities is tipping strongly in their favour.

Evaluate company performance

How profitably have different organisations been trading and what strategies are they implementing to deal with the current turbulence? 

The ‘Company’ section of ReportLinker’s Smart Insights tool lets you dive deep into the performance of individual businesses.

Based on this search, we can see that major mining companies are seeking to increase their output in the following years anticipating a sharp increase in demand.

ReportLinker’s smart analytics allow you to see how frequently a company has been mentioned over a time-frame of your choosing.

By simply clicking on a name, the platform gives you access to up-to-date information on a company’s financials, product strategy, M&A activity and production outputs.

With its vast pool of intelligence sources, high quality insights and AI-enabled search tools, ReportLinker is the quickest, most user-friendly way to understand sector trends and drivers. It’s an invaluable aid to analysis and planning.