Base metal prices may begin to rise amid supply shortages – experts

Non-ferrous metals may show growth this year, RBC cites the opinion of Andrey Vanin, head of the analytical department of Gazprombank Investments. The reason is a growing deficit due to the problems present in the industry.

Against a background of soaring energy prices, the costs of metal producers this year have increased by 10 times compared to last year, and the average level for the past 10 years, they exceeded 12 times, according to data from Eurometaux. Many companies have been forced to suspend production or stop operations - in Europe, production capacity has been cut by half over the past year. According to RBC, demand for base metals will not decrease and they may go up in price from February to March. Recovering economic activity in China may also push prices up.

On the back of falling supply aluminum prices, according to the magazine, by summer may hit $3,000 per ton, and within the next two years - $4,000. RBC and Prime news agency agree that copper has growth prospects due to its wide range of applications and increasing deficit. Since the beginning of the year it has gained about 12%. However, there are risks here, including a slowdown in the global economy and a high probability of recession.