Metals Performance

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The price of Palladium in 2017 increased by 56,2% exceeding the threshold of $1,099. This increase occurred due to factors such as the weakness of the dollar (which favors demand) and the increase in demand for the production of catalysts in vehicle mufflers.

Aluminum was the second best performer, which followed the Chinese policies that are pushing to limit polluting products coupled with USA politics where Trump renegotiated the NAFTA agreements (North American Free Trade Agreement) with the objective to limit the dumping of aluminum in the USA.

2017 price of metals performance

Copper follows aluminum, experiencing the best year since 2010, after years of overproduction. Companies such as Glencore and Rio Tinto are taking advantage of the scarcity of metals and will increase production to meet greater demand for the manufacturing of electric cars.

Zinc joined the race, reaching the highest level in the past decade. Its increase occurred after the publication of data highlighting the supply shortage by a decline in LME inventories.

Nickel has grown by 22%, which can be explained by the demand for the use in electric batteries.

Gold had a double-digit growth this year despite being overshadowed by the equity market rally. The market is now expecting a decline in the coming months, given the continued global growth and future increase in rates from the Fed, coupled with the absence of serious geopolitical risk.

Platinum has had a controversial trend, influenced above all by mining developments in South Africa. The platinum market has been in decline in the recent years, and is not showing signs of recovery. This is due to the increase in demand for electric vehicles, which do not require a catalytic converter like mufflers from traditional vehicles.

Tin was the metal characterized by the worst trend this year. It was below 5,6%, and the fall was mainly due to the expectations of weaker demands from China; now the market is becoming less liquid, with decreasing volumes.

Periodic table of metals performance from 2012 to 2017

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