By Steve Fiscor, Editor-in-Chief
Apart from gold, copper and iron ore, most metals suffered a setback price-wise in 2023. The battery minerals took it on the chin. According to the E&MJ Price Index, lithium hydroxide, nickel, and cobalt declined 81.6%, 45.5%, and 31.5% respectively. Before it gained battery mineral status, nickel was widely known for and is still predominantly used for stainless steel. The platinum group metals did not fare much better. Palladium prices continued to slide throughout 2023. Gold, copper, and iron ore, according to the E&MJ Project Survey, also command the greatest share of investment worldwide after coal. Those investments are expected to continue, and they appear to be well placed.
Gold had a good run in 2023. Prices were relatively calm for most of the year and then surged to record heights in December. Gold prices hit an all-time high of $2,078.40/oz on December 28, 2023. It remained above the $2,000/oz mark as this edition went to press.
Iron ore finished at $145 per dry metric ton (dmt), which was an increase of 23.4% from the beginning of the year ($117.50/dmt). Unlike the radical swings in other markets, iron ore prices climbed steadily throughout the year.
Copper finished where it started, $3.85/lb vs. $3.81/lb. After peaking at $4.25/lb on January 23, 2023, copper prices declined and then seemed to be range bound for most of the year in the high $3/lb range.
What does 2024 hold for metal prices? These days reality is stranger than fiction. Three rate cuts from the U.S. Federal Reserve could spell problems for gold, but the risk of a recession must fade before that happens. With wars in Ukraine and Gaza, continuing sanctions against Russia, South Africa’s inability to provide power, civil unrest in Panama and Ecuador, tension with China and Taiwan, and a looming presidential election in the USA, well… let’s hope for steady improvement with limited volatility.
