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Steel prices reach levels not seen since 2008. The benchmark price for hot-rolled steel reached a new record high of $1,080/ton last month, according to our check of the market Jan. 11-12. When reaching out to steel buyers, SMU also asks for comments on their business situations. Here are some recent comments: “We’re unable to get supply.” / “Supply is restricted. We’re worried about a price collapse and market claims or customers going out of business.” / “We’re concerned about the risk of a price correction. What goes up must come down. We don’t want to be caught at the top.” / “We are optimistic that business will improve when more and more people are vaccinated.” / “We don’t have much to sell, but profits look good short term.” / “I would say our prospects are excellent if steel were available.” Source: Steel Market Update 

The Energy Information Administration (EIA) forecasts that generation from natural gas-fired power plants will decline by about 8% in 2021, as a result of rising fuel costs. This would be the first annual decline since 2017. In the meantime, coal-fired powerplants will see an increase of 14% in 2021, although it declined by 20% in 2020. Finally, EIA forecasts 18% growth for renewable energies such as solar and wind power, which will be their fastest annual growth rate since 2010. 

Futures in London increased 2.1% on Tuesday. U.S. stocks went up as Janet Yellen called on lawmakers to “act big” on stimulus, which could provide a boost to consumption while vaccines continue to roll out. A weaker U.S. dollar is also increasing the appeal for commodities that are priced in the currency. Source: Yahoo

''With forecasts of a global economic recovery this year, there are potentially more inflows to come for oil. The value of Brent and WTI open interest is still down about a third from a peak of $408 billion in 2018, but the World Bank expects a 4% growth in global economy this year, and a 7.9% climb in China, the world’s largest oil importer.''- Alex Longley @ Yahoo

LNG prices went up in January due to low stocks, a cold winter, production outages and shipping delays. This created a real arbitrage opportunity for sellers, as prices in Europe and the US stayed at much lower levels. While several sellers rushed to to meet the Asian demand, many struggled to find the volumes for a quick delivery. Only major companies such as Shell and Total  managed to re-route Nigerian and Qatari gas tankers previously destined to Europe. US gas futures for February trade at around $2.60 per million British thermal unit (mmBtu). The price is at around $10 in Europe, while Asia has prices just under $30.