After 2021's intoxicating price surge, commodities could feel hangover in 2022

Singapore

BY MOST bullish expectations, commodities from oil and coal to iron ore, copper and aluminium outshone this year as economic activity burst back to life and output seemed never enough. But while that may have laid the blocks for the widely-expected commodity super-cycle, most pundits expect the upward trajectory to ease up next year as demand-supply gaps "normalise".

"Our expectation is that most of the commodities complex should see prices easing from current levels. Supply and demand balances for a number of commodities are expected to loosen, and so fundamentally this should take some pressure off prices," said ING's head of commodities strategy Warren Patterson.