Commodity Price Forecasts

Commodity markets were volatile through late March and the first half of April, as hopes were raised that OPEC and Russia would agree on an output freeze at the Doha meeting. However, the meeting was a failure and oil prices tumbled as a result. The rest of the complex tended to track oil higher and then lower, but there was a more positive tone from markets driven by China with iron ore and steel prices surging - due to an upturn in construction and housing activity. Property prices are now booming in some Tier 1 cities and this is filtering through into the steel market in particular.