FY16: A year of uncertainty for commodities

Prospects of recovery in consumption of metals were weakened by contraction in China and turbulence in the global economy. The US Fed's frequent change in its stance over interest rates kept metals, bullion and energy prices subdued in 2015-16.

BULLION

After three years of negative return, gold turned positive in FY16, following huge volatility in equity markets. Gold climbed 16.5 per cent in Q1, its biggest quarterly rise since 1986. Silver lagged behind with a fifth year of negative returns.

Read more from our special coverage on "COMMODITIES,"

• Commodities looking for equilibrium

METALS

Iron ore was the best performer among metals because of the limited supply of raw materials. Steel continued its downward march along with primary base metals, due to weak demand from the infrastructure sector.

AGRI COMMODITIES

Among domestic-centric agri commodities, chilli was the best performer in FY16 because of lower output.

ENERGY

Opec's decision to continue high output lowered crude oil prices in FY16, the fourth year of negative returns. Crude oil hit the lowest in 13 years in the March 2016 quarter because of excess supply. Natural gas and coal also followed the suit.