Prices of copper, considered to be an economic bellwether, rose by a quarter last year and are expected to continue their positive momentum in 2022 due to the metal's central role in the energy transition.

Mining stocks slid, with Fortescue down more than 4% from the previous week

Vale said last week it expected to spend $1.64 billion in 2022 on reparations related to the Brumadinho dam burst.

“The most likely outcome is an environment where commodity prices can settle from the extraordinary highs of 2021. But there are plenty of risks to this outlook," says Wood Mackenzie.

The world's fourth-largest iron ore miner said it shipped 47.5mt of the steel-making commodity in the December quarter.

Fortescue Future Industries and WAE will work together to decarbonise Fortescue.

"There is strong anticipation that steel production will resume in the medium term," SinoSteel Futures analysts said.

If 2021 was a year of volatility and uneven performances for commodities, then 2022 is shaping up as a rinse and repeat as uncertainty over the pandemic recovery remains the dominant theme, writes Clyde Russell.