The World Bank’s latest Commodity Markets Outlook report forecasts an 8% fall in metal prices in 2023, followed by a further 3% drop in 2024.
The bank’s metals and minerals price index rose 10% in the first quarter of 2023, driven by optimism for a strong recovery in China and global growth prospects.
However, most prices had receded from their January highs by the end of the quarter, except for iron ore prices due to strong demand from China’s steel sector.
The report highlights that metal prices will fall primarily due to weak global demand and improved supplies.
Production recovery is expected to lower aluminum prices by 11% in 2023, while copper prices are forecast to drop by 4% in 2023 and by a further 6% in 2024 as supply conditions improve.
Nickel prices are expected to decrease by around 15% in 2023, and zinc prices are forecast to drop by 20% this year as most European smelters restart, and energy prices fall.
Precious metals prices are expected to increase by 6% in 2023 due to safe-haven demand amid ongoing concerns about inflation, financial stress in the first quarter, and elevated uncertainty with respect to future growth prospects. – BusinessNewsAsia.com