Turbulence is in the very nature of commodities markets, but this has been a year like no other, writes Andy Home.

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 recovery from the coronavirus pandemic remains, writes Clyde Russell.

"Analysts expect a rebound in steel output as Beijing's yearly targets have been met, prompting mills to resume production," broker SP Angel said in a note.

Next year is shaping up to be a banner one, particularly in China’s electric-vehicle segment.

Official from the ministry said country should strengthen exploration of the Bayan Obo mine in the Inner Mongolia region, as well as medium and heavy rare earths resources.

Out of the 27 key commodities, Fitch sees 19 of them averaging lower on a year-on-year basis.

The optimism around the metal continued to be tempered by China's rising stockpiles of imported iron ore hitting the highest level since July 2018.

Huayou, the world's biggest cobalt refiner in 2020, has been looking at investing more in lithium projects in China.