Outlook for base metals, steel, coal stable in 2021: Moody’s

MUMBAI: Metals, steel and coal that saw a lot of turbulence in 2020 due to various factors including the Covid pandemic, are set stabilise in 2021. Moody’s has assigned a stable outlook for base metals, steel and coal.

The research report said that this is mainly as the demand seems to be improving globally. While Covid pandemic impacted most of the large economies growth trajectory, industry expert expect growth in the coming months due to hope around the vaccine.

Our 2021 global outlooks for base metals, steel, and Coal are stable based on improved demand fundamentals and recovery from the pandemic’s effects during 2020. Steel’s recovery will vary by region, while coal faces long-term challenges Trade tensions, disparate levels of recovering demand globally and coal’s secular decline continue, the report said.


The Moody’s report said that for base metals, trade concerns, slow global recovery following severe contraction in 2020, excluding China, will continue to affect base metal demand, sentiment and prices. Companies strengthened their balance sheets and showed resilience during the coronavirus-fueled downturn.

For steel the improving demand, prices support recovery in 2021. Pace depends on GDP growth and resulting regional improvement Pricey iron ore, coking coal will hurt blast furnace producers trade frictions, imports will continue to hurt performance, though US imports will stay low.

While for coal an uneven recovery with economic and regulatory pressures remain. Asia Pacific will recover modestly Europe and North America will show some recovery from severe drops, but long-term secular decline remains.