Fitch Solutions See Most Metal Markets Swinging to Surplus in 2020

SEATTLE (Scrap Monster):  The latest market report published by Fitch Solutions foresees surplus market for most metals, due to Covid-19 pandemic. The anticipated global recession in 2020 is likely to hamper metals demand. It must be noted that the agency had recently lowered metals consumption and production forecasts for several countries.

According to Fitch report, the metals production in 2020 is expected to remain lower than previous forecasts, primarily on account of smelter shutdowns due to lockdowns ordered by various governments in their fight to contain the spread of the pandemic.

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Fitch has downgraded the global copper production forecasts from 1.9% to 0.6%. The global copper consumption is expected to decline by 1.1% in 2020, as compared with the 1.6% year-on-year growth forecast provided earlier. The consumption forecasts for China and the U.S. have been revised to declines of 1.5% and 4.5% respectively. It expects global copper market to fall into a surplus of 344kt in 2020. Also, Fitch foresees the market shifting into deficit of 51kt in 2022.

The global aluminium market is expected to be in a surplus of 3mnt in 2020 compared to 1mnt in 2019. The surplus will narrow to 2.5mnt by 2021.

The revised forecast by Fitch forecasts the tin market balance to be zero in 2020 and a surplus of 4kt in 2021. The nickel market is likely to be in a surplus of 38kt in 2020, which will further reduce to 4kt in 2021.