Wiring, energy, geopolitics drive 2025 metals: Sprott
Critical metals, uranium and gold will shine this year driven by accelerating deglobalization and energy security demands, Sprott said.
Iron ore and most base metals fell after US President Donald Trump said that he could hit China with 10% tariffs on all imports from as early as next month.
Singapore iron ore futures declined as much as 1.3% after the president’s threat, which he said was in response to China sending the drug fentanyl to North America. While the US is not a key importer of Chinese steel, its tariffs could impact the domestic market and dampen the prospect of economic recovery.
Iron ore prices slumped by more than a quarter in 2024, as China’s economic problems and real estate sector crisis weighed on demand, while big miners in Australia and Brazil boosted supplies. Prices have edged up 3% this year on more positive signs in the Chinese economy, along with optimism Beijing could implement more stimulus.
Trump’s levy threat against China came a day after his announcement that he may enact tariffs of as much as 25% tariffs on Mexico and Canada at the start of February. That triggered a slump in prices of base metals on the London Metal Exchange, which has extended into Wednesday’s trading.
Futures of iron ore were 0.8% lower in Singapore at $103.95 a ton at 11:34 a.m. London. Yuan-priced contracts in Dalian and steel prices in Shanghai also fell.
Copper on the LME fell 0.5% to $9,235 a ton, down from its highest close in more than two months. Aluminum, nickel and zinc also declined.
(By Yihui Xie)
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