The World Bank expects metal prices to rise in 2022.
This is stated in the World Bank report “Commodity Markets: Development, Challenges and Policies”.
The report says that global commodity markets have changed as a result of the Covid-19 Pandemic, the war in Ukraine and the effects of climate change, this transformation can have serious consequences for emerging economies.
The World Bank believes that demand for some commodities is likely to increase, but at the same time, growth in global demand for commodities is expected to slow as population growth and emerging market development slow down.
The report says that moving to cleaner energy can be challenging: “Demand for metals needed for renewable energy infrastructure and electric vehicle production is likely to increase in the coming years, pushing up metal prices and providing windfall benefits for export”.
At the same time, bank analysts suggest that prices for these metals may remain high for a long time, which will depend on the speed of the energy transition, the volume of capital investments in the mining industry, environmental restrictions for these industries, as well as policies and incentives.
It notes that copper and aluminum used in wind turbines, solar panels, grid connections, electric vehicles and charging infrastructure will be the main beneficiaries of energy conversion.
Other important metals include steel alloys such as chromium and iron ore, battery metals such as nickel, lithium and cobalt, and rare earth and platinum group metals.
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