Coal demand to keep hitting records through 2027, IEA says
The latest forecast from the IEA sees demand for coal rising to nearly 8.9 billion tons by 2027, about 1% higher than 2024 levels.
Aluminum led base metals lower, extending losses from the previous session, as traders wait for the Federal Reserve’s final interest-rate decision for 2024 later this week.
Fed Chair Jerome Powell is widely expected to deliver a quarter-point of easing on Wednesday, but US retail sales data came in stronger than expected at a time when several policymakers are calling for a more gradual approach to rate reductions going forward.
Commodities pulled back across the board Tuesday, shrugging off a report that Chinese leaders were planning to set an annual growth goal of about 5% for next year and raise the budget deficit.
On Monday, aluminum fell after data showed China’s average daily output rose to a record in November, with booming exports encouraging high levels of production. That may partly reflect the end of tax discounts on Chinese exports a month ago, which spurred a rush to ship out ahead of their expiry at end-November.
Aluminum dropped as much as 1.6% to $2,526 a ton on the London Metal Exchange, the lowest since Nov. 14, following a 1.5% decline in the previous session.
The longer run trends are more bullish for aluminum though, according to Commerzbank AG. A slowdown in the expansion of Chinese production is likely, the bank said, citing a sharp rise in input prices and the requirement to reduce emissions. Commerzbank sees the metal rising to $2,800 a ton in the second half of 2025.
Copper fell 0.8%, dipping below $9,000 a ton. Zinc and nickel also fell.
Read More: Aluminum, steel most exposed metals to Trump tariffs, Citi says
Comments