LONDON/SINGAPORE, Dec 30: Industrial metals, liquefied natural gas and steel finished 2017 in stunning fashion as a crackdown on pollution in China, the world's no. 2 economy, boosts demand for cleaner fossil fuels and raw materials vital to clean-tech industries.
The world's most traded commodity, oil, rallied to finish the year at levels not seen in more than two years on increased demand and efforts by major producers to cut supply.
For 2018, analysts predict more of the same: accelerating growth in major economies and increased infrastructure spending driving prices for industrial commodities and energy sources above current multi-year highs.
"I think we have seen the end of low commodity prices as funds are expected to focus on commodities in 2018, with strong economic growth," said Terry Reilly, senior commodities analyst with Chicago-based Futures International.
Metals used in the booming renewable energy sector, including copper for transmission lines and solar panel wiring, have seen strong demand and price rises, as have materials like aluminum used in electric vehicles.
This year's best performing metal, palladium, is chiefly used as a component in catalytic converters, which clean vehicle exhaust fumes. Buoyant car sales in China and Europe, plus tightening emissions standards, have stoked fears over metal availability after years of market deficit.
Palladium has gained 57 percent this year, hitting its highest since early 2001 on Thursday at $1,072 an ounce and outstripping a buoyant year in fellow precious metal gold, up 13 percent in its biggest annual rise since 2010.
"$1,000/oz is the new support and while it stays above this level, technically speaking the forecast is still bullish," Italpreziosi's head of finance Filippo Finocchi told the Reuters Global Gold Forum this month. -Reuters
