Australian metals producer IGO announced the first production of battery-grade lithium hydroxide from the Kwinana Lithium Hydroxide Refinery in Western Australia. The refinery is a joint venture between IGO and China's Tianqi Lithium Corp. The qualification process with offtake customers will begin after independent verification of product samples. RBC Capital Markets views this as a key milestone, forecasting commercial production by September 2022 and full ramp-up by September 2023. Tianqi Lithium recently signed a strategic cooperation agreement with China Aviation Lithium Battery Co. to create an integrated value chain in the lithium industry.

A two-day labor strike by Canadian Pacific Railway workers, including locomotive engineers, conductors, and yard workers, ended on March 22 after an agreement was reached with the Teamsters Canada Rail Conference. The resolution, which involves binding arbitration, allows approximately 3,000 employees to return to work, mitigating potential disruptions to the North American supply chain, particularly in petroleum, agriculture, and mining sectors. The strike occurred amid global supply chain issues exacerbated by the pandemic and severe weather in Canada. Key stakeholders, including US senators and industry leaders, had expressed concerns about the strike's impact on markets and the economy.

The palladium spot price surged over 5% to approximately $2,810/oz on March 3, following the suspension of Nornickel's global depositary receipts on the London Stock Exchange. This event has raised concerns about the potential loss of Russian palladium supply, which constitutes about 45% of the global production. Analysts suggest that the price increase is speculative and driven by immediate reactions to the situation in Ukraine, logistical constraints due to airspace closures, and market nervousness. South African and Zimbabwean producers may benefit, with even iridium prices rising. The auto sector, which relies on palladium for emissions reduction, could face challenges if Russian supplies are significantly disrupted.

Finnish alloy steels and ferrochrome producer Afarak anticipates continued robust demand for ferrochrome in 2022, driven by the stainless steel sector. The company reported strong performance in the automotive and aerospace industries in late 2021, with expectations for this trend to persist. Despite challenges from increasing energy and logistics costs, Afarak resumed profitable operations and reduced debt. The company saw a significant drop in ferroalloys production in 2021 due to minimal mining activity in South Africa, but specialty alloys production increased to meet higher demand for low carbon ferrochrome. CEO Guy Konsbruck highlighted encouraging order books and rising sales prices for 2022, despite high energy and consumables costs at their German plant.

Key nonferrous metals such as nickel, copper, and aluminum saw a reversal in gains in London trading due to sanctions on Russia being less severe than expected. The sanctions, announced by the US, EU, and UK, are not anticipated to majorly impact Russian metals flows, though they could affect the financing of Russian metals and steel trade. Analysts from Commerzbank, ED&F Man Capital Markets, and SP Angel provided insights on the situation, noting that while direct impacts on the aluminum and nickel industries are unlikely, the risk of supply outages remains due to potential Russian export restrictions and low inventory levels. The gold price also fell from a 17-month high as sanctions were not as harsh as expected.

Key non-ferrous metals prices, including nickel, copper, and aluminum, rose around 5% in early London trading on February 24 due to concerns over supply curtailment following Russia's invasion of Ukraine. Russia, a major producer of these metals, faces potential trade sanctions that could tighten global markets. The European Commission, led by President Ursula von der Leyen, plans to introduce a package of targeted sanctions. Market volatility is expected to continue as the situation develops, with gold and palladium prices also surging as investors seek safe-haven assets.

Tin prices have reached new record highs in 2022 due to short-term supply issues from Indonesia, adding to an already tight market. The London Metal Exchange spot tin price hit $43,955/mt, slightly down from a record high. Tin, crucial for electronics and future technologies, has seen declining inventories for over two decades. Major producers include China, Indonesia, and Myanmar. Indonesia's export delays and logistical problems are exacerbating the supply shortage. Few new projects are expected to alleviate the tightness, with demand projected to outpace supply. Recycling plays a significant role, but processing end-of-life materials remains challenging.

Glencore's preliminary 2021 own-sourced copper output decreased by 5% year on year to 1.196 million mt, primarily due to the disposal of the Mopani mine in Zambia and lower copper grades at its Antapaccay operations in Peru. The company's cobalt production rose by 14%, while nickel and zinc outputs fell by 7% and 4%, respectively. Glencore's financial performance was strong, with an 84% year-on-year increase in adjusted EBITDA to a record $21.3 billion. The company is under investigation by several regulatory authorities and has raised $1.5 billion to resolve these issues. Glencore plans to pay $3.4 billion in dividends and initiate a $550 million share buyback.

Electric vehicle (EV) sales surged in 2021, driving significant growth in nickel demand despite a global semiconductor chip shortage. UBS analysts noted a 130% increase in EV sales in key markets like China, Europe, and the US, with global sales expected to rise by 60% in 2022. Nickel demand from batteries accounted for 10% in 2021 and is projected to grow substantially. Analysts from HSBC and ED&F Man Capital Markets highlighted the pivotal role of nickel in the energy transition and the challenges automakers face in meeting government mandates for EV adoption. Nickel prices are forecasted to rise, with the London Metal Exchange reporting a spot price of $23,035/mt as of January 20, 2022.

Indonesia's domestic demand for nickel ore is expected to rise by 30% to 100 million mt in 2022, driven by the operation of new nickel processing smelters and a cathode precursor plant. The country, holding a significant share of global nickel reserves, is poised to play a crucial role in the energy transition with the growing market for nickel-cobalt-aluminum batteries used in electric vehicles. Nickel prices have surged due to market tightness, with further potential increases driven by geopolitical tensions and possible export levies from Indonesia. Analysts from various financial institutions provide differing forecasts for nickel prices in Q1 2022.