Global commodity prices dive on coronavirus fallout in February
Global commodity prices fell 7.7% over the previous month in February, worsening from January’s 1.5% dip and marking the sharpest contraction since December 2018.
The escalating coronavirus fallout sent global commodity prices sliding in February, as energy prices plunged amid feeble oil demand, while severe disruptions to industrial activity in China depressed base metal prices. That said, mounting fears of a global recession due to the coronavirus outbreak boosted prices for precious metals as demand for safe-haven assets soared. Meanwhile, agricultural prices dipped for the first time in three months in February.
FocusEconomics panelists downgraded their forecasts considerably this month and currently project global commodity prices to fall 13.9% annually in Q4 2020 (previous edition: +0.4% year-on-year). The slump is set to be entirely driven by a dive in energy prices as increasing oversupply and faltering demand batter global oil markets, although higher prices for precious metals should somewhat soften the downturn. Moreover, the uncertainty over the outlook continues to build as governments and central banks use all resources at hand to fight the global coronavirus pandemic. Global commodity prices should rebound further ahead, with panelists forecasting a 12.1% year-on-year gain in Q4 2021.
Price forecasts and historical data for Energy, Metals and Agricultural Commodities