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The essential perspective on global commodities
Three months after a historic short squeeze on the London Metal Exchange, which sent nickel prices soaring past $100,000/mt , the LME is back in the spotlight. This time it’s facing two lawsuits, a complaint and a membership cancellation over the situation. Many market participants have openly voiced their concerns and dented trust in the exchange, with hedge funds and trading houses leading the way in reducing nickel positions or backing out entirely
This week we kick off with Chinese energy and commodity trends: in power generation, renewable share has grown at the expense of thermal, while steel markets are looking for signs of improving demand. Plus, a look at the pattern of US energy costs and recessions, and California low-carbon power generation. 1
Lockdowns to limit the spread of COVID-19 in China, especially in Shanghai, disrupted the supply chains of vehicle makers, who were already dealing with a shortage of semiconductor chips. Market projections became more uncertain after Russia invaded Ukraine , as the latter was a key supplier of wire harnesses for vehicles to several European automakers
