The four articles in our latest Commodity Markets Update each hit on a key area. Carter Moore discusses the decoupling of nickel from its cousins in the base metal complex and shows how demand growth from electric vehicles and batteries has catapulted the commodity to new highs. The nickel story will continue over the next several years as a result of consumer demand shifting away from higher emission vehicles. Surging prices in palladium and rhodium also continue; look out for more coverage from the CMU on these stories early this year.
In our interview with Lockton Marine, we learn about certain perils in the energy commodities business, how specific risks are allocated between storage providers and marketers and how companies can enhance their coverages to manage risk in an increasingly complex world. Also pertaining to energy, how will updated accounting standards impact companies in the business of leasing transportation and storage assets? The rolling out of a new lease accounting standard, ASC 842, may change the way capital providers look at the balance sheets of merchants. And if changes in environmental and accounting policy are not enough, Patrick Scott takes us to the geopolitical arena, providing readers with an update on trade policy. As an ever-dynamic topic, trade will be an issue the CMU continues to provide material updates on throughout the year.