LNG prices fell 6% throughout the month of March, closing the month at US$14/MMBtu. This represents a 64% decline from the peak of US$38/MMBtu experienced in mid-December 2022. The rapid decline in price has been a result of warmer than expected weather conditions throughout Europe over the winter season. As the northern hemisphere exits the winter period, LNG imports are expected to reduce significantly, with major importer, Japan expected to receive approx. 5 million tonnes in March, which would represent the lowest total import of LNG for a month since May of 2020.

Gold prices surged 9% in March, closing at US$1,980/oz. This movement represented the commodities best month since July of 2020. The collapse of Silicon Valley Bank sparked growing concerns in the banking sector which resulted in increased demand for the safe-haven asset. Other external market factors such as a weakened US dollar and decreasing bond yield have also played a part in the precious metals price increase.

Lithium carbonate prices fell from US$61/kg to US$57/kg during March, representing a 6% decline for the month. This price represents a new 15-month low for the alkali metal as prices have continued to fall since November 2022, as a direct result of reduced demand from China. The world’s largest EV manufacturer announced the end of a subsidy program for lithium battery and EV manufacturers which has greatly reduced the demand for lithium out of China over Q1 of 2023.

The nickel price continued its recent decline into March closing 4% lower at US$23,651/T. The price fall is a result of more scandals surrounding the London Metals Exchange (LME), when commodity trader Trafigura unearthed a $577m nickel fraud which sent shockwaves through the market. Also commonly used within EVs, the price of nickel has been directly affected by the reduced demand from China over the first quarter in 2023.

Praseodymium neodymium oxide experienced significant pullback in the month of March, plunging 22% to US$76,066/T at 31 March. The rare earth metal experienced this significant drop as a direct result of EV giant, Tesla announcing during the month that they will be eliminating the use of the rare-earth metal in the next generation EV’s and will be looking to install permanent magnets within their vehicles to reduce the reliance on the expensive materials.