Commodity prices broadly remain clearly above pre-covid levels. In the opinion of economists at Danske Bank, persistent supply challenges will likely maintain metal prices clearly above pre-covid lows for the time being.

Metals supply has declined broadly, not just in Russia

“Tight supply still points towards metal prices remaining at elevated levels, while Chinese infrastructure stimulus provides backdrop for demand.”

“Russia is not the only factor weighing on supply: covid-disruptions, earlier underinvestment, strikes and social unrest due to rising costs of living in EM producer countries all contribute toward metal supply remaining below pre-covid trend.”

“Increased investment into alternative energy sources in Europe combined with the persistent supply challenges will likely maintain metal prices clearly above pre-covid lows for the time being.”