Ian Roper, General Manager at Shanghai Metals Markets Singapore explains how the high prices that we’re currently seeing across the commodities markets are not in fact supported by the underlying fundamentals. China is not currently the primary diver of prices. The reason for the high prices is actually the ex-China demand that is pulling the materials out of China. While China may not currently be at the center of commodities pricing, Roper notes that this is purely a temporary shift due to the global restocking cycle (making up for the impacts of 2020 on the markets).
The discussion then focuses on the energy transition and Roper notes which metals he sees being the top beneficiaries of the global decarbonization. He also points out how battery chemistry is a key part of this.
Finally, looking at China’s role in decarbonization, Roper notes their policies and timelines and how the next 5 year plan plays into their transformation.