Metals prices have been under pressure for weeks. Although the market could suffer further falls, economists at Commerzbank expect metals prices to soar in the coming year.s

Supply will not be able to keep pace with demand in the long term

“If the economy does lose momentum or even slides into recession in the major economies, this is unlikely to leave metals unscathed. In this scenario, we expect metals prices to fall further in the coming months. However, metals prices should also turn upward again at a correspondingly early stage if, for example, the view prevails that the US Federal Reserve is attempting to push the US economy out of recession again with interest rate cuts in the coming year.”

“We firmly believe that many metals prices will rise significantly in the coming years and mark new record highs. This is because metals such as copper, aluminium and nickel are essential in the desired decarbonization of the economy.”

“Supply will not be able to keep pace with demand in the long term, which justifies significantly higher metals prices.”