As expected, demand and supply were heavily impacted by the Covid-19 pandemic during 2020, causing disruption for buyers and sellers on many fronts. GDT said it was fortunate as an online service to be well-positioned to maintain trading events throughout the year, supporting buyers and sellers to continue trading during volatile times.
GDT Events achieved an average clearance rate of 95% of offered quantity sold at year-end, resulting in a combined total of 678,076 metric tonnes, with a total of $2.1bn traded during the events.
The twice-monthly auction attracted an average of 178 active bidders per trading event, with a total of 319 bidders from 70 countries participating at least once during 2020. The majority (56%) of the participating bidders were from Asia/Oceania (30% North Asia, 26% Southeast Asia/Oceania), while winning bidders, at 59%, were also from the same regions (31% North Asia, 28% Southeast Asia/Oceania).
The average GDT Price Index fell 6% in 2020, reaching a 16-month low in May. Powders were dominant, with WMP and SMP accounting for 79% of quantity traded.
Eric Hansen, director of GDT, said many businesses were impacted by Covid, through global supply chain disruptions and decreased foodservice and consumer demand.
Hansen said a survey of bidders showed incomplete deliveries was the most common issue encountered, and disruptions with logistics providers were also experienced by most. He added customers are still experiencing disruptions to their manufacturing processes.
The annual report can be downloaded here.