BAKU, Azerbaijan, July 16. The prices for non-ferrous metals will continue to fall, although the come-back to the pre-COVID-19 pandemic is not expected, Trend reports via the recent outlook from Fitch Solutions.
Industrial metals have extended their sharp losses, with high levels of global inflation, a tightening US dollar, and concerns over rapidly slowing growth all hitting demand for the metal over recent weeks and rising concerns about the more transmissible new COVID-19 variant detected in Xi'an and Beijing in China.
Ferrous metals have fallen in price, and iron ore has lost 20 percent over the past month, falling from $135 per ton to about $108 per ton. All monthly data on steel products have not yet been published, but on a monthly basis, there is a decrease in the range of 7-10 percent against the background of weakening demand signals from China, where construction incentives have so far had a limited impact.
“Higher coking coal prices continue to provide support to steel in the weeks ahead, but we expect iron ore to continue its recent losses in the short-term on lockdown concerns and growing recession risks in Europe,” Fitch Solutions noted.
According to the report, non-ferrous metals have also seen significant losses, with aluminum, copper, nickel and tin losing 15.3 percent, 22.4 percent, 25.9 percent, and 31.5 percent of their market value respectively over the last month.
“China's continuation of its zero-COVID policy - with a new lockdown imposed in the city of Xi'an this week linked to the new COVID variant - will also continue to limit demand from the world's largest importer of base metals,” Fitch Solutions concluded.
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