In this piece, we will take a look at the five worst performing commodities in 2023. If you want to take a look at what’s been happening in the commodity markets over the past year, then head on over to 10 Worst Performing Commodities in 2023.
5. Aluminum
Returns During H1 2023: -24.79%
Aluminum is an important metal due to its strength and weight. It is used predominantly in fabricating the fuselages and other components of passenger aircraft due to its favorable characteristics. It is also used in making electrical components due to its electrochemical properties and raw aluminum is also combined with other chemicals to create aluminum compounds. China was the world’s largest aluminum producer in 2022 having produced 40 million metric tons. The market is expected to grow to $277 billion by 2030 end.
4. Natural Gas
Returns During H1 2023: -24.99%
Natural gas is the fuel of choice for countries looking to reap the benefits of high energy petroleum fuels and reduce their emissions as well. The fuel was at the center of turmoil in the commodities sector last year since Russia is the world’s largest natural gas exporter. These exports have fueled Europe’s economy, and countries such as Germany found it quite difficult to wean their dependence on the fuel. A rebalancing in the energy industry has also hurt German economic growth, and high inflation due to gas and energy prices has pushed inflation to record high levels in the U.S.
3. Zinc
Returns During H1 2023: -33.64%
Zinc is the only metal on our list that is also a dietary supplement. The human brain, muscles, and other body organs contain zince, and it helps the body in chemical reactions. A zinc deficiency can cause hair loss and other problems in humans. Outside the human body, zinc is widely used in making batteries. Another popular usage of metal comes through its alloy brass. Brass is made after zinc is combined with copper, and it is popular among plumbing products and other use cases.
2. Palladium
Returns During H1 2023: -35.41%
While Palladium is not officially classified as a rare Earth metal, it is nevertheless quite rare since the global palladium supply sits at a mere 7 million ounces. The metal is a close cousin of platinum, and it is part of a group of six metals called the platinum group metals. Like platinum, palladium is also heavily used in catalytic converters, and its electrochemical properties also make it suitable for heavy duty industrial use cases such as spark plugs for aircraft.
1. Coal
Returns During H1 2023: -51.99%
At the onset of the industrial revolution, coal was the world’s favorite fossil fuel. It is primarily used as a heat source for steam engines, but burning coal emits soot, carbon, and other pollutants into the atmosphere. Coal prices are down this year due to their meteoric rise last year as demand for the dirty fuel surged in the rush to procure alternatives to Russian fuel.
Disclosure: None. You can also take a look at 20 Countries With The Highest Dairy Consumption and 10 Most Profitable Small Businesses in 2023.
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